The International Monetary Fund (IMF) has called on Nepal’s authorities to legalize cryptocurrencies and move from blanket bans to regulation by international standards. Despite a total ban on trade and mining imposed by the country’s central bank in 2021, use of digital assets in Nepal continues to grow. According to the IMF, cryptocurrency transactions reached a record 13% of GDP ($2.6 billion) in 2021 and stabilized at 8% by 2024, with stablecoins accounting for the largest share of transactions.

The Fund’s experts stress that the prohibitions have not worked: Nepal has surpassed neighboring Myanmar and Bangladesh in terms of crypto flows. Market legalization, according to the IMF, would help authorities control bank deposit outflows and prevent currency-control overrides. Experts have noted that digital assets remain in high demand for cash transfers and trading, even in closed markets, and the experience of social-media lockdowns in the country has only confirmed the ineffectiveness of such restrictions.

The IMF will continue to monitor Nepal’s financial stability, pushing for consumer protection mechanisms in the crypto industry. The call came amid broader concerns about the fund: earlier, in April 2026, the IMF warned that soaring tokenized real-asset (RWA) markets could increase systemic risks to the global financial architecture and accelerate the spread of crises.