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Nepal plans to combat cryptocurrency fraud through increasing public awareness and transaction monitoring.
Odaily Planet Daily News According to the Financial Intelligence Unit (FIU) of Nepal, although trading digital assets is officially prohibited, Cryptocurrency is still widely used for planning online fraud. FIU is a specialized department under the Central Bank of Nepal, responsible for monitoring and combating financial fraud, including Money Laundering and terrorist financing. FIU pointed out in the 'Strategic Analysis Report' released on November 18th that the use of Cryptocurrency for Money Laundering by bad actors has increased. The report states that fraudsters often convert illegal funds into Cryptocurrency, making it difficult for authorities to track and recover the funds. In addition, more and more Nepalese citizens are becoming victims of Crypto Assets investment scams. Fraudsters contact potential victims through social media or online advertisements, often promising unrealistic and generous returns. In many cases, the illegality associated with Cryptocurrency transactions makes victims reluctant to report to the authorities. To address the increasing network threats, FIU has proposed two important suggestions: strengthen the review of encryption transactions and train Financial Institutions to identify danger signals and report them promptly. (Cointelegraph)