The Financial Intelligence Unit (FIU) of Nepal has reported a rise in cryptocurrency-related fraud despite the existing ban on trading digital assets. As stated in their Strategic Analysis Report, fraudsters are leveraging cryptocurrencies for illicit activities, complicating efforts to trace and recover stolen funds. Many victims shy away from reporting fraud due to the stigma attached to cryptocurrency's illegal status. The FIU revealed that approximately 65% of fraud complaints in 2024 were cyber-enabled. To combat this issue, the FIU recommended increased monitoring of cryptocurrency transactions, training for financial institutions to identify fraud indicators, and enhanced public awareness to reduce vulnerability to scams. Strengthening cooperation among various agencies and updating regulations to tackle digital fraud were also emphasized. Similar measures have been enacted in South Korea, indicating a regional approach to address financial fraud in the crypto space.

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