IMF flags rising crypto adoption in Nepal despite ban, urges close monitoring

The International Monetary Fund (IMF) has expressed concern regarding the increasing adoption of cryptocurrencies in Nepal, despite existing prohibitions. The fund noted a rise in stablecoin and other crypto asset flows within the country. In response, the IMF is urging Nepalese authorities to implement a robust regulatory framework to oversee these activities.

This call for monitoring aims to protect Nepal's financial stability from potential risks associated with unregulated digital assets. The IMF also acknowledged and commended recent reform efforts undertaken by Nepal to improve oversight and governance within its cooperative sector.

This matters because the growing use of cryptocurrencies, especially in countries with bans, poses significant risks to financial stability that require international attention and regulatory action.