Kathmandu. KATHMANDU: The Financial Information Unit under Nepal Rastra Bank (NRB) has released its ‘Strategic Analysis Report for 2025’, analyzing risks related to virtual assets. According to the NRB, the report identifies the risks of hiding illicit income through the use of virtual assets, cross-border price transfer, and increased financing of terrorist activities in Nepal.

The report, which is based on suspicious transactions and activity reports from January 2021 to July 2025, as well as data and analysis from national and international sources, reminds that any transaction, use or investment of virtual assets is completely prohibited by law in Nepal.

In Nepal, such activities are linked to criminal networks such as illegal foreign exchange (hundi), online gambling and financial frauds, business fraud, and illicit money laundering through intermediaries, the report said. The report concludes that this will make it easier to hide illegal income through hierarchical transactions by circumventing the formal financial system.

The report points out that technical access to research and control of virtual assets, challenges in cross-border jurisdictions, and practical difficulties in seizure and management are major obstacles. Based on this, the report has suggested strengthening coordination among indicator agencies, regulators and law enforcement agencies, monitoring as per the risks, enhancing technical capacity and raising awareness among the general public.

Nepal Rastra Bank (NRB) has also warned that investigation, seizure or prosecution may proceed as per the law against any person or organization directly or indirectly involved in such illegal activities. The report is expected to serve as a guiding tool for policy formulation, research prioritization, and regulatory oversight.