Public awareness and stricter monitoring are key to tackling rising crypto fraud cases.
Nepal’s FIU Flags Growing Crypto Fraud
Nepal’s Financial Intelligence Unit (FIU) has identified a surge in crypto-related fraud, despite the country’s ban on digital asset trading. In a report issued on November 18, the FIU highlighted how bad actors use cryptocurrencies to launder illicit funds, exploiting the lack of traceability.
Crypto’s Role in Cybercrime
The FIU, part of Nepal Rastra Bank, noted that crypto scammers often move funds to offshore accounts, complicating recovery efforts. Additionally, the illegality of crypto trading in Nepal discourages victims from reporting scams, exacerbating underreporting of such crimes.
Proposed Countermeasures
To combat the issue, the FIU recommends:
- Stricter transaction monitoring by financial institutions.
- Public awareness campaigns to educate citizens about fraud risks.
- Strengthened inter-agency cooperation to improve tracking and recovery of illicit funds.
- Updates to regulatory frameworks to better address crypto-related fraud.
Global Comparisons
Similar measures are being explored globally. For example, South Korea recently proposed mandatory reporting of cross-border crypto transactions to curb financial fraud, emphasizing the importance of international regulatory alignment.
Nepal’s Road Ahead
Nepal is taking critical steps to address the growing threat of crypto fraud. By focusing on awareness, monitoring, and regulation, the nation aims to protect its citizens and strengthen its financial integrity.
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