The IMF calls on Nepal to establish a cryptocurrency regulatory framework and closely monitor the flow of stablecoins

According to Decrypt, the IMF stated in its latest annual assessment of Nepal that despite Nepal's comprehensive ban on cryptocurrency trading and mining since 2021, the inflow of cryptocurrencies and stablecoins grew rapidly between 2019 and 2024, exceeding 13% of GDP at one point in 2021 and rebounding to about 8% in 2024, with cross-border flows accounting for about 5% of GDP.

The IMF recommended that Nepal establish a cryptocurrency regulatory framework in accordance with international standards, strengthen monitoring of stablecoins and unpegged crypto assets to prevent circumvention of capital controls and large-scale deposit outflows, and urged it to complete the FATF action plan and exit the gray list.