cryptojournalist
Despite a ban on crypto trading, Nepal’s Financial Intelligence Unit (FIU) is taking steps to tackle the rise in cryptocurrency-related fraud.
The Growth of Crypto Fraud
The FIU’s recent report shows that fraudsters are increasingly using cryptocurrencies to hide illegal activities, such as money laundering. Crypto’s global transferability makes it difficult for authorities to follow the money trail.
Barriers to Reporting Fraud
Victims of crypto fraud often don’t report scams because of the illegal status of crypto in Nepal. Many fear legal consequences or feel embarrassed. By May 2024, nearly two-thirds of fraud cases involved cybercrime.
How Nepal Plans to Combat Fraud
The FIU is focusing on improving crypto transaction monitoring and training financial institutions to spot signs of fraud. They also recommend boosting public awareness and updating laws to help prevent fraud.
