Nepal’s Financial Intelligence Unit (FIU) has recognized the increasing use of cryptocurrencies by fraudsters despite the country’s official ban on digital asset trading. To combat this, the FIU has proposed several measures, including enhanced public awareness campaigns and stricter transaction monitoring.
The FIU’s “Strategic Analysis Report” highlights the significant rise in cyber-enabled fraud, with nearly 65% of all reported fraud cases linked to digital currencies. To address this, the authority recommends increased scrutiny of cryptocurrency transactions, training financial institutions to identify red flags, and strengthening inter-agency cooperation.
Furthermore, the FIU emphasizes the importance of public awareness in reducing susceptibility to fraud. By educating the public about the risks associated with cryptocurrency scams and fraudulent investment schemes, the authorities aim to empower individuals to make informed decisions and protect themselves from financial loss.
The proposed measures reflect Nepal’s growing concern over the misuse of cryptocurrencies for illicit activities. By adopting a multi-pronged approach, the country aims to safeguard its financial system and protect its citizens from falling victim to cyber fraud.
