Bitcoin in Nepal | 2018 | Is it Legal?

Bitcoin

Bitcoin in Nepal.

Many of Nepalese people might be interested in investing their money in bitcoin after its value soared unexpectedly. The price of bitcoin in 2010 was under one cent.Within a time period of eight years, it has welcomed sixteen thousand dollars. However, the news is not good as cryptocurrency trade is illegal in Nepal and people could be punished for encroachment of the law. So, it is not advisable for people to involve in such trade.

The government of Nepal does not allow the trades as officials are figuring out the nature of the business.  The government was silent before but recently, CIB arrested the people engaged in the exchange activities which shows that it is strict with the unofficial transaction of currency. Nepal Rastra Bank does not have provision of allowing the Nepalese people to involve in such activities within Nepal and it seems it would not provide opportunity in the near future. It says that you cannot have bitcoin transition or use bitcoin to exchange foreign or Nepali currency as bitcoin is not classified as a currency by Nepal government. We can guess it might be due to the risk and insecurity involved in the trade as there is no specific regulatory mechanism for it.

There are also many people who raise their voice for the opportunity. They consider Nepal having the manpower in the field of cryptography and block chain technologies. And many people are working for the Western platforms. But, the country where legal system is not strong cannot hold such complex system. Corruption, drug trafficking, fraud and other criminal activities may increase as it would be easy and under curtain business.

But sometimes people chose illegal way to trade bitcoin. As they are not able to sell their bitcoins in Nepal, they contact people living in a country where bitcoins are legal. They transfer their bitcoins to their bitcoin wallet address and request them to transfer money through bank to their bank account. In doing some commission is taken by the sender. This is both risky and illegal method. People should not even think of doing this naive activity. You can imagine the negative consequences it could generate.

Not only in Nepal, the country like Bangladesh has considered trading of cryptocurrency as “punishable offence”. Bolivia, Ecuador, Egypt, Iran are the countries which have considered it to be illegal. If we talk about India, cryptocurrency trade is not legal there. However, it has not considered it to be illegal as well. Narendra Modi government and India’s central bank have made it clear that they are not at ease with the cryptocurrency trade. So, not only Nepal, other countries are also having problems with the virtual currency.

However, Japan was the first country to declare bitcoin to be legal. It has plans to become the bitcoin capital despite numerous  hacking attempts upon people’s account. The reason behind this act is to uplift the worsening economic condition since 1990’s. Mostly young Japanese investors are attracted by it as the profit is high in it comparing to other sources.

What is bitcoin?

Bitcoin is the form of cryptocurrency seen for the first time. It means that it is a digital money which uses encryption to protect transaction and regulate the creation of new ones. It is the system working without the bank and single administration. There is no one between the transactions. The transactions are verified with the help of cryptography and is recorded in a ledger called a blockchain.

The concept of bitcoin has come into existence with the group of people using the pseudonym Satoshi Nakamoto. Their paper entitled ” Bitcoin: A Peer to Peer Electronic Cash system” was published in 2008. In the paper they explained their finding as “peer to peer version of electronic cash” which allows “online payments to be send directly from one party to another without going through a financial institution”. In 2009, bitcoin developed when Satoshi Nakamoto mined bitcoin for the first time. Later, a programmer named Hal Finney, became the person to get the first bitcoin transaction. He gained ten bitcoins on the first day he downloaded the bitcoin software.

  How do people get bitcoin?

In trading of bitcoin, the first step is to set up a wallet. This could be an online wallet, a desktop wallet and a mobile wallet and even a offline wallet. Bitcoin wallets are basically designed program to store bitcoin which is similar to your bank account. This wallet is protected by keys or passwords which you have to keep safe. Otherwise, you could lose your entire wallet.

The next step is to open account with cryptocurrrency exchange. There are great numbers of exchanges operating but it is best to work with the most reliable one. So, it is up to you to decide with whom you want to work with. You have to provide them your official information and your valid address to set up an account. And the payment system are generally the bank transfer, credit card and Paypal.

 

 

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