Bitcoin and cryptocurrencies, in general, have seen a considerable amount of success this year. Bitcoin and Alt coin prices have skyrocketed as more and more people realize the usefulness and possibilities this new concept brings to the economy. Even countries are starting to understand the benefits of Bitcoin and the block chain. The interest for the crypto-coin has grown so much that some nations have begun to accept Bitcoin and its technology. For example, Japan has been embracing Bitcoin to pay for several services. But, for all the support they have enjoyed, some places are still reluctant to join the crypto revolution. One of those areas is Nepal.
So, while Japan and South Korea look for ways to further implement Bitcoin and alt coins into their economy, even going as far as stating their intent on legalizing it as means of payment, Nepal is going the other way around.
Last month, the most significant Bitcoin exchange in Nepal, Bitsewa, announced its closure as a consequence its founders being arrested.
The founders were charged with operating a racket business under the cloak of an online technology business. The announcement of the operations shutting down was made through the Bitsewa fan page on Facebook. In the post, Bitsewa employees expressed their discontent with the measures taken by the Nepal Rastra Bank. Moreover, it lamented the fact that the crackdown came at a time when the company was gaining notoriety and popularity in the region.
Additionally, Bitsewa stated their rejection towards the attitude of Nepal's government towards technological and economic modernization. And indeed, exchanges are a considerable way of understanding how cryptocurrencies work and getting familiar with the idea of using them in your daily life.
Unfortunately, when it comes to Nepal, residents won't be able to enjoy the benefits that Bitsewa brought to the region. And, this event is far from an isolated incident or one that could be ruled as coincidental.
Nepal has been taking a direct stand against cryptocurrencies, declaring them illegal because of the lack of state regulations made. This news was made official and published by the central bank of Nepal.
Furthermore, these aren't even the first arrests suffered by Bitcoin users for the sole fact of trading with it in the region. Earlier in October, the Investigation Bureau of Nepal arrested seven operators from several parts around the country, charging them with "crimes" similar to those presented against Bitsewa's creators. This event was also reported through Bitsewa's own Facebook page.
Even though all the people previously arrested were let go after some time, the Bitsewa team and their users are still waiting for a resolution on their founder's' arrest.
However, there has not been an official ruling as of this writing. If found guilty, the suspects could face a fine of three times the amount "stolen" and even up to three years in jail. Sadly, the significant consequences that can fall upon Bitsewa and its users forced the company to return all the funds invested in Bitcoin. It is a sad case of a government trying to remain in a past that will not come back.