Contributions are currently being channeled through a dedicated portal, nepalrelief.org, which allows global donors to contribute using various cryptocurrencies and stablecoins, including Ethereum, Polygon, and Solana. According to reports, the platform has already raised 175,000 dollars.
Under the operational structure, digital tokens sent by donors are converted into US dollars outside Nepal and subsequently transferred into the government's official treasury through traditional US banking channels. Proponents of the arrangement, which involves collaboration with entities like Cross River Bank, Polygon, and Engage Nepal, argue that because the actual crypto conversion takes place abroad and no digital assets enter domestic financial systems, the process bypasses local restrictions on cryptocurrency trading.
However, the initiative has raised fundamental legal and regulatory questions regarding the origin of the funds. While Nepal Rastra Bank (NRB), the country's central bank, has long maintained that buying, selling, and trading cryptocurrencies like Bitcoin are illegal and fall outside the regulatory framework, the government defends the initiative by asserting it is merely accepting fiat currency derived from foreign transactions rather than legalizing digital assets.
Finance Minister Swarnim Wagle confirmed to a national daily that the government authorized the facility to leverage the global crypto community for disaster relief. Despite this, legal experts and observers question the consistency of accepting the proceeds of activities that remain banned domestically, noting potential implications for foreign exchange regulations and anti-money laundering compliance.
Nepal Rastra Bank officials indicated that the matter is currently under review. Sudha Shrestha, assistant spokesperson for the central bank, stated that the regulatory body became aware of the arrangement through media reports and has briefed management for further discussion.
The unfolding situation highlights a growing tension between leveraging innovative global funding channels for emergency relief and maintaining strict domestic financial regulations, leaving the long-term legal precedent of the framework dependent on formal clarifications from the central bank and the government.
