Crypto Scams in Nepal
Cryptocurrency fraud targeting Nepalis through Facebook and Telegram, exploiting limited regulation and diaspora remittance narratives.
Part of: Crypto Scams
Last reviewed: 1 June 2026
Cryptocurrency is not legally recognised as a payment method in Nepal under Nepal Rastra Bank directives, yet interest in digital assets — particularly among young Nepalis and those with diaspora connections — has grown steadily. This interest has attracted fraudulent exchanges, token sales, and crypto pyramid schemes that operate in the regulatory grey area.
Crypto scams in Nepal often target recipients of remittances from the Gulf or other regions, framing crypto as a higher-return alternative to traditional savings that can be sent and received across borders without banking friction.
How this scam works on Nepal
Facebook groups advertise crypto investment plans promising 5–15 percent monthly returns, framed as opportunities accessible only to early adopters. Members pay NPR [amount] in crypto to join and receive referral commissions for bringing new members — a classic pyramid structure that collapses when recruitment slows.
Fake P2P exchange platforms on Telegram offer to convert crypto to NPR at above-market rates. After a victim sends crypto to the seller, the NPR is never transferred.
Some scammers approach Nepali workers in Gulf countries with crypto investment plans, collecting USDT before the victim realises no investment is being made.
Common red flags
- Crypto investment promising monthly returns of 5 percent or more
- Referral commission structure requiring recruitment of new members
- P2P exchange on Telegram offering above-market conversion rates
- Platform requires sideloading or is accessible only via a Telegram bot
- Operator cannot name any regulated licence or legal structure
- Withdrawal conditions that require further deposit or referrals
How to protect yourself
- Be aware of Nepal Rastra Bank guidance discouraging crypto transactions
- Use only internationally recognised exchanges with established track records
- Avoid any crypto scheme that rewards member recruitment — it is structurally unsound
- Conduct P2P trades only through established exchange escrow systems, not informal Telegram groups
- Verify any crypto operator through the Securities Board of Nepal (SEBON) if they claim investment status
- Report suspicious crypto groups to Nepal Police Cyber Bureau before participating
How to report it
- Report to Nepal Police Cyber Bureau at cyberbureaunepal.gov.np
- Alert SEBON at sebon.gov.np if the scheme involves investment solicitation
- Contact Nepal Rastra Bank at nrb.org.np if a payment system misuse is involved
Frequently asked questions
Is it illegal to own cryptocurrency in Nepal?
Nepal Rastra Bank has issued circulars prohibiting transactions in cryptocurrency, making it illegal to buy or sell crypto within Nepal's financial system. Possession is not explicitly criminalised but transacting is restricted. The legal risk is an additional reason to be extremely cautious about any crypto scheme in Nepal.