IMF Urges Nepal to Regulate Crypto Despite Ban as Flows Surpass 13% of GDP

Nepal's cryptocurrency flows briefly exceeded 13% of GDP in 2021 despite a comprehensive ban enacted that same year, according to an IMF report dated June 10, 2026. Cross-border transactions still accounted for 8% of GDP by 2024, with stablecoins dominating activity. The IMF has called for immediate regulatory alignment with FATF standards to combat money laundering risks.

Vietnam and Nepal emerge as paradoxical case studies—the former leads with crypto flows at 26% of GDP, while the latter maintains strict prohibitions yet sees persistent adoption. Remittance corridors and merchant acceptance appear to fuel grassroots demand that outpaces legislative enforcement.

Central bank directives from 2021 criminalizing trading, mining, and related activities have failed to curb usage. Market observers note the resilience of peer-to-peer networks and dollar-pegged stablecoins in circumventing restrictions.