Banking News – Nepal Police has intensified surveillance of online betting and cryptocurrency-related activities, with 90 people arrested in fiscal year 2025/26 (FY 2082/83) for involvement in the two activities.

Among those arrested in recent cryptocurrency-related cases are 35-year-old Chinese national Zhu Yi Feng, who allegedly conducted cryptocurrency transactions worth more than Rs. 17.79 crore, and 29-year-old Bangladeshi national MD Sihabul Islam, who allegedly conducted transactions worth Rs. 30.49 lakh. Both were arrested in Kathmandu in Chaitra. Likewise, Kathmandu residents Sagar Giri and Pramod Prasad Dhital, both aged 28, were arrested for their alleged involvement in cryptocurrency transactions.

According to Nepal Police, 48 people were arrested for involvement in online betting in FY 2025/26, including 26 foreign nationals and 22 Nepali citizens. In FY 2024/25, a total of 148 people, including 93 foreign nationals, were arrested for online betting, while 62 people, including 13 foreign nationals, were arrested in FY 2023/24.

Similarly, 42 people were arrested for cryptocurrency-related activities in FY 2025/26, including 7 foreign nationals and 35 Nepali citizens. In FY 2024/25, a total of 117 people, including 45 foreign nationals, were arrested, while 10 people, including 5 foreign nationals, were arrested in FY 2023/24.

Police said online betting platforms tend to become particularly active during major national and international sporting events.

Nepal Police Central Spokesperson Deputy Inspector General Abhi Narayan Kafle said police have prioritized intelligence gathering and surveillance to control online betting networks and cryptocurrency transactions.

“Police have been prioritizing information gathering and surveillance to control online betting networks and cryptocurrency transactions,” Kafle said, adding that authorities are collecting intelligence on potential betting locations, groups and individuals, monitoring digital networks involved in online betting, particularly sports betting, and closely monitoring transactions conducted through banking channels and digital wallets.

Police said online betting is also linked to cybercrime, fraud and hundi transactions. Social media platforms are reportedly being used to attract people to such activities, which can subsequently facilitate fraud and informal money transfer networks.

Under Section 125(4) of the Muluki Criminal Code, 2074, a person convicted of betting-related offenses can face confiscation of the amount involved, up to one year of imprisonment and a fine of up to Rs. 10,000.

If fraud is involved, penalties are imposed under Section 249 of the Muluki Criminal Code, 2074. Depending on the nature of the fraud, the punishment can range from imprisonment and fines to more severe penalties. Cybercrime-related offenses are subject to the Electronic Transactions Act, 2063.

Cryptocurrency is based on blockchain technology and can be stored in digital wallets through computers or mobile phones. Although it has no physical form, it carries a market value. Cryptocurrency does not have a central bank or centralized regulatory authority.

According to police, major risks associated with cryptocurrency include economic instability, financial instability, challenges to monetary policy implementation, foreign exchange risks, inadequate financial consumer protection, investment risks and fraud.

Individuals involved in cryptocurrency-related activities can also face action under Section 262(a) of the Muluki Criminal Code, 2074, which prohibits the use of virtual currency. The provision allows for confiscation of the amount involved and assets acquired or increased through such transactions, along with up to five years of imprisonment and a fine equivalent to the amount involved.