According to Cointelegraph, the Financial Intelligence Unit (FIU) of Nepal has found that despite the official prohibition on trading digital assets, cryptocurrency is still widely used for online fraud.
The FIU is a specialized department of Nepal's central bank, Nepal Rastra Bank, responsible for monitoring and combating financial fraud. Its 'Strategic Analysis Report' published on November 18 points out that criminals are using cryptocurrency for money laundering, increasing the difficulty of tracking funds.
Cryptocurrency is easily transferred to offshore accounts, increasing tracking complexity. Furthermore, more and more Nepali citizens are becoming victims of cryptocurrency investment scams, and due to the illegality of crypto transactions, victims are often unwilling to report.
The FIU recommends strengthening monitoring of cryptocurrency transactions and training for financial institutions, as well as raising public awareness to reduce fraud. South Korea also plans to introduce cross-border cryptocurrency transaction reporting requirements at the G20 meeting.
