Nepal's Financial Intelligence Unit (FIU) highlighted in its Strategic Analysis Report 2024 that the country's ban on crypto trading poses a major hurdle for fraud victims to report cases. The FIU, a division of Nepal Rastra Bank, monitors suspicious transactions related to illicit activities like money laundering. The report noted an increase in fraudsters using tactics such as 'smurfing' to evade detection. These criminals also convert illegal funds into digital currencies, complicating asset tracing for authorities. Victims are often lured into investing in digital assets with false promises of high returns, leading to financial losses. Despite the ban on digital asset trading and mining in Nepal, victims hesitate to report scams due to potential legal consequences. The FIU called for stricter oversight on crypto transactions, increased public awareness, and a balanced regulatory framework to combat fraud effectively. While Nepal and a few other countries have banned digital asset trading, neighboring nations like India and Pakistan have taken different approaches towards regulating digital assets. Read more AI-generated news on: https://app.chaingpt.org/news