PANews reported on November 18 that according to Cointelegraph, Nepal's Financial Intelligence Unit (FIU) found that despite the official ban on trading digital assets, cryptocurrencies are still widely used to plan online fraud. The agency pointed out in the "Strategic Analysis Report" released on November 18 that there has been an increase in the use of cryptocurrencies by criminals to launder money, and scammers have converted illegal funds into cryptocurrencies, which has brought challenges to the authorities to track and recover funds.
In response, the financial intelligence agency made two important recommendations to prevent the use of cryptocurrencies in financial fraud. These recommendations include strengthening the review of cryptocurrency transactions and training financial institutions to identify red flags and report them in a timely manner. The agency further recommended raising public awareness to reduce the possibility of being defrauded, strengthening inter-agency cooperation, and updating the regulatory framework to deal with digital payment fraud.
