A report released by the Financial Intelligence Unit of Nepal revealed that Crypto Assets are widely used for online fraud in Nepal, despite the ban on Digital Currency Trading in the country. Fraudsters often convert illegal funds into Crypto Assets to evade regulation, making it difficult for authorities to trace and recover the funds. Additionally, an increasing number of Nepalese citizens have become victims of Crypto Assets scams. The Financial Intelligence Unit calls for enhanced scrutiny of encryption transactions and training for Financial Institutions to identify and report warning signals.