The Nepalese
police have arrested at least seven individuals for allegedly being
involved in virtual currency trading activities in the country as of
early October 2017. The arrests were made despite the absence of
regulations covering the trading of cryptocurrencies in the country.
Based on local press reports, the suspected traders were arrested by members of the Central Investigation Bureau (CIB) in Kathmandu and Chitwan. Among those arrested were Prashant Pratap Shah of Kathmandu, Bida Dhakal of Nuwakot, and Mingmar Tamang of Sindhupalchok.
According to the CIB’s DSP Jeevan Kumar Shrestha, this is the first time that cryptocurrency exchange operators were arrested in the country.
“They have been kept at the police custody. The traded amount will be discovered after further investigation.”
Possible ban
The arrests made by the CIB are expected to raise more questions than answers, as the trading of Bitcoin
and other cryptocurrencies is not considered illegal, because of the
absence of regulations on the issue in the country. Due to the
situation, it is still unclear what offenses will be filed against the
arrested individuals.
Due to this possibility, digital currency exchange operator
Bitsewa has already ceased its operation in early October. The exchange
is considered as the Nepalese version of LocalBitcoins.
The country has also previously notoriously seized all relief funds in bank accounts ‘to ensure all donations are not misused’.
