Crypto transactions in Nepal surged to $2.6 billion in 2021, reaching 13% of GDP, despite a legal prohibition, the IMF said.
The International Monetary Fund urged Nepal to monitor crypto activity closely after flows peaked at $2.6 billion in 2021, exceeding 13% of GDP. Despite a legal ban, adoption grew between 2019 and 2024, raising concerns over capital controls and financial stability.
Nepal’s central bank outlawed crypto transactions in 2021, yet inflows rebounded to nearly 8% of GDP in 2024 after dipping to 4% in 2023. The IMF recommended regulation under international standards to curb illicit flows and deposit outflows.
The findings were part of the IMF’s 2026 Article IV Consultation, completed on June 5. Experts noted that remittances and trading sustain crypto use in banned markets, favoring regulation over prohibition.