Answer:
Cryptocurrency is banned in Nepal because the government has deemed it illegal and unauthorized for use in the country. The Nepal Rastra Bank, which is the central bank of Nepal, issued a circular in 2017 stating that any person or entity that deals in cryptocurrencies would face legal consequences.
The circular cited several reasons for the ban, including concerns about the potential use of cryptocurrencies for illegal activities such as money laundering, terrorist financing, and other criminal activities. The central bank also cited concerns about the lack of regulation and the risks associated with investing in unregulated assets.
Furthermore, the Nepalese government has not recognized cryptocurrencies as legal tender and has not provided any legal framework for the use of cryptocurrencies in the country. As a result, any use or exchange of cryptocurrencies is deemed illegal and subject to punishment.
It's worth noting that there has been some recent discussion about legalizing and regulating cryptocurrencies in Nepal. However, as of now, the ban on cryptocurrencies remains in effect.