IMF Urges Nepal to Establish Crypto Regulatory Framework, Citing 13% Peak GDP Inflows

According to Decrypt, the IMF called on Nepal to establish a cryptocurrency regulatory framework and strengthen monitoring of stablecoins and unanchored crypto assets in its latest annual assessment released on June 11. The IMF noted that despite Nepal's comprehensive ban on crypto trading and mining since 2021, crypto and stablecoin inflows surged from 2019 to 2024, peaking at over 13% of GDP in 2021 and stabilizing at approximately 8% in 2024, with cross-border flows accounting for roughly 5% of GDP. The IMF recommended Nepal adopt international standards to prevent capital control evasion and large-scale deposit outflows, and urged the country to complete its FATF action plan and exit the gray list.
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