Telecom regulator NTA has called on ISPs to shut down crypto-related apps and sites. Referring to the Ministry-level decision by the Finance Ministry, NTA asked to restrict and black list online platforms that lead to cryptos.
With this, the much-scrutinized crypto trading is set to witness further sanctions from the government. The government has already outlawed crypto mining, trading and cautioned the public not to venture many times. And now the government is further tightening the noose on virtual currency.
In its notice, NTA shared that the decision to bar such apps and sites comes from a ministry-level decision from the Ministry of Finance.
NTA has deemed trading, operating, or maintaining any activities pertaining to crypto, bitcoin, hyper network, and online betting illegal and asked for their restriction in any form or shape by the ISPs. This attempt to further contain the spread of virtual currencies will tighten noose for many traders and enthusiasts.
Ban crypto-related apps to partly solve the liquidity issue?
Currently, Nepal Rastra Bank has faced liquidity issues. The banks have less capital and hence less money circulation in the market. To mitigate, the bank has hiked interest rates on deposits. It has also narrowed the amount for domestic remittance. But these acts have not resulted in a desirable effect yet. And there is a surge in interest in cryptocurrencies among the Nepali demography.
Likely, the government senses that a part of the problem is the outflow of Nepali currency due to crypto trading. It may seem discouraging cryptocurrencies to partly alleviate the liquidity crisis. This could be another reason for the latest decision to ban crypto-related apps and sites.
The act to ban crypto-related apps and sites from Nepali internet space will help bar virtual currencies’ growing allure in Nepal. But there is still a debate whether it is the right thing to do. India has authorized crypto activities with a 30% tax. The government has already reasoned that cryptos are not reliable for the current model of the economy. As its response, it has announced a plan for digital rupees. Now with further sanctions on online apps and sites to restrict cryptocurrencies, it seems more likely that the government won’t back down on its stand against cryptocurrencies and activities that encourage them.