7 People arrested for Bitcoin Trading

[satish37]

Actual case as per the report says ,"transfer of funds, operating independently of a central bank."DSPof the CIB said that this is the first incident that the bitcoin operators have been arrested from the country. Charged under act of
allegedly running bitcoin exchange business. News by  kathmandupost

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[orions.belt19]

They were doing more than just trading, they were running an exchange.  Running an unlicensed exchange is risky business in any country.  

But I find this sentence from the OP article to be most interesting:

"He further said that if found guilty the suspects will be punished under the prevalent laws of Rastra Bank."

Are finacial laws in Nepal set by the bankers?

It's not just that they were running an unlicensed exchange. Bitcoin trading is downright illegal in Nepal. It's sad, but these people are most likely going to be made an example of.

It kind of makes you wonder just how much power a government can have regarding cryptocurrencies. They can't monitor and stop every single transaction, but they can jail exchanges to make sure their currency isn't used to buy and sell Bitcoins. This problem can theoretically be averted by vendors accepting Bitcoins as payment, so there would be no need to convert, but it still sucks that some governments are too averse to new technologies.

With this kind of law and recognition in their country, then the simple act of trade would constitute to an illegal activity. For there to be fraud, there would have to be deceit and intention to cause a wrong doing against other persons but since the simple act of trading is declared to be illegal, then the persons involved were jailed.

This would inevitably happen when a government declares this kind of jurisdiction pertaining to cryptocurrencies. Even if you do not intend to harm anyone, you may be jailed by simply performing these kind of acts.

[X7]

When you are dealing with PRoC you cannot take these types of risks without knowing their 0 tolerance policy

[Theb]

The news article lacks explanation on what grounds they are being arrested for, but I presume is that they are running a bitcoin exchange without any business permit in that country making it illegal. As of now there are no legal standing in Nepal with regards to Bitcoin but people who are running a illegal business should be apprehended as for their own safety especially their citizens because without any official addresses they could run away with all their client's Bitcoin.

[Yuhee]

The news article lacks explanation on what grounds they are being arrested for, but I presume is that they are running a bitcoin exchange without any business permit in that country making it illegal. As of now there are no legal standing in Nepal with regards to Bitcoin but people who are running a illegal business should be apprehended as for their own safety especially their citizens because without any official addresses they could run away with all their client's Bitcoin.

Further results may uncover also how they were discovered or what did they do that the government spotted them. Even if its illegal but most users also are doing transaction underground. My guess would be that they made big transaction at such that they converted it to their fiat currency or, they were tracked from on guy from their government making big transaction without legal laws of regulation from India.

[Emmami@758]

It's the latest in development from the country of Nepal which started nabbing bitcoin traders for fraud. Can be sentenced to upto 3 years in prison.

http://kathmandupost.ekantipur.com/news/2017-10-06/7-nabbed-for-running-bitcoin-exchange-business.html

First case of bitcoin related arrest in the country.

just now only i had listen about this words. in the world most of the people using this bit coins business now. it is legal or illegal what ever. but politicians, business magnets and other cheaters like who can doing smuggling drugs business that kind of people may do illegal bit coins trading. may be that kind of people arrested.

[Aamir1]

It's the latest in development from the country of Nepal which started nabbing bitcoin traders for fraud. Can be sentenced to upto 3 years in prison.

http://kathmandupost.ekantipur.com/news/2017-10-06/7-nabbed-for-running-bitcoin-exchange-business.html

First case of bitcoin related arrest in the country.

The story is totally different from what your title states. They are not arrested for trading bitcoin, but they are arrested for illegally running a bitcoin exchange in the country which would not be allowed in any country, and anyone would get arrested if authorities come to know that some people are running an exchange without any license and legality. It should not be a surprise for them, nor for the people hearing the news. And they should have been expecting this to happen, because running a bitcoin exchange is quite a big business these days, and if you try to do it hiding behind walls, this is what you can expect when it comes to the sight.

[olubams]

It's the latest in development from the country of Nepal which started nabbing bitcoin traders for fraud. Can be sentenced to upto 3 years in prison.

http://kathmandupost.ekantipur.com/news/2017-10-06/7-nabbed-for-running-bitcoin-exchange-business.html

First case of bitcoin related arrest in the country.

The story is totally different from what your title states. They are not arrested for trading bitcoin, but they are arrested for illegally running a bitcoin exchange in the country which would not be allowed in any country, and anyone would get arrested if authorities come to know that some people are running an exchange without any license and legality. It should not be a surprise for them, nor for the people hearing the news. And they should have been expecting this to happen, because running a bitcoin exchange is quite a big business these days, and if you try to do it hiding behind walls, this is what you can expect when it comes to the sight.

I guess that is exactly what will happen across the world that government will say ' do your business, but do it the right way or else we are coming for you' and I think this is something that should be encouraged in as much as we want to run our exchange business and make money, we owe a duty of care for individuals patronising the platform to be safe. Aside that, anyone who does not have the intention to scam would not have any issue registering with government.

[Hegelia]

Bitcoin traiding ..without low about this virtual coins not is so simple to arrest the right people.

[suvo05]

It's the latest in development from the country of Nepal which started nabbing bitcoin traders for fraud. Can be sentenced to upto 3 years in prison.

http://kathmandupost.ekantipur.com/news/2017-10-06/7-nabbed-for-running-bitcoin-exchange-business.html

First case of bitcoin related arrest in the country.

I think you are talking about the case of delhi in india??

No the news is not about Delhi in India. That happened in Nepal(country between India and China) .
But, there are some facts which are totally unclear to me.
1.Is Btc totally ban in Nepal? Or they have been arrested for exchanging bitcoin without a valid license ?
2.Nepal trying to follow the Chinese policy over crypto-currency ?

[savushkinTA]

I did not understand what they are accused of?

[Theb]

It's the latest in development from the country of Nepal which started nabbing bitcoin traders for fraud. Can be sentenced to upto 3 years in prison.

http://kathmandupost.ekantipur.com/news/2017-10-06/7-nabbed-for-running-bitcoin-exchange-business.html

First case of bitcoin related arrest in the country.

The story is totally different from what your title states. They are not arrested for trading bitcoin, but they are arrested for illegally running a bitcoin exchange in the country which would not be allowed in any country, and anyone would get arrested if authorities come to know that some people are running an exchange without any license and legality. It should not be a surprise for them, nor for the people hearing the news. And they should have been expecting this to happen, because running a bitcoin exchange is quite a big business these days, and if you try to do it hiding behind walls, this is what you can expect when it comes to the sight.

I guess that is exactly what will happen across the world that government will say ' do your business, but do it the right way or else we are coming for you' and I think this is something that should be encouraged in as much as we want to run our exchange business and make money, we owe a duty of care for individuals patronising the platform to be safe. Aside that, anyone who does not have the intention to scam would not have any issue registering with government.

It really serves right for them as running a Bitcoin Exchange without any permit is really breaking a law, you are operating a business without any legal authorization you are unjustly enriching yourself. Not only that I assume that the suspension of their businesses will also result to the confiscation of all cryptocurrency in their exchanges which is a bad thing for their clients as all of them will experience losses.

[Pamadar]

It's the latest in development from the country of Nepal which started nabbing bitcoin traders for fraud. Can be sentenced to upto 3 years in prison.

http://kathmandupost.ekantipur.com/news/2017-10-06/7-nabbed-for-running-bitcoin-exchange-business.html

First case of bitcoin related arrest in the country.

The story is totally different from what your title states. They are not arrested for trading bitcoin, but they are arrested for illegally running a bitcoin exchange in the country which would not be allowed in any country, and anyone would get arrested if authorities come to know that some people are running an exchange without any license and legality. It should not be a surprise for them, nor for the people hearing the news. And they should have been expecting this to happen, because running a bitcoin exchange is quite a big business these days, and if you try to do it hiding behind walls, this is what you can expect when it comes to the sight.

I guess that is exactly what will happen across the world that government will say ' do your business, but do it the right way or else we are coming for you' and I think this is something that should be encouraged in as much as we want to run our exchange business and make money, we owe a duty of care for individuals patronising the platform to be safe. Aside that, anyone who does not have the intention to scam would not have any issue registering with government.

It really serves right for them as running a Bitcoin Exchange without any permit is really breaking a law, you are operating a business without any legal authorization you are unjustly enriching yourself. Not only that I assume that the suspension of their businesses will also result to the confiscation of all cryptocurrency in their exchanges which is a bad thing for their clients as all of them will experience losses.

that's also my concerned mate the traders whos going to lose their investment since the exchange was been close and the owners will be in prisoned
do we have any updates if what will happen to those coins inside their service how that investment will turned to after this incident, its really a bad
business if you will start it illegally better to deal with government jurisdiction before starting,.

[Lampaster]

I did not understand what they are accused of?

No matter what they are accused of. This does not happen in countries where there are independent courts. The arrests of bitcoin users place where it all depends on what the authorities want. Most often traders or users are charged with tax evasion or illegal banking operations. Theoretically, each of us risks when changing the bitcoins to Fiat.

[darkangel11]

Fraud must have a purpose to deceive people and take their money. In the case of trading bitcoins this is not. A person voluntarily buys a bitcoin, and has the ability to always exchange the coins for Fiat. Nepal does not apply to democratic countries therefore the courts will take the side of power. I feel sorry for these enthusiasts of the cryptocurrency but they are also responsible for the power which is in their country.

We both know it, but we are talking about crazies here. There must be a purpose for this crackdown and when you see no viable reason it usually means money. Countries like Nepal stink of corruption and we all know that most governments treat people like property. They thought traders should be rich, so they put them in jail and I bet they confiscated their computers. Now they'll have a choice: give up all their money and get a small sentence or don't and get raped in prison.
BTW Nepal has much higher corruption rate than countries like Mexico, Thailand and Pakistan, go figure.

[leonair]

I did not understand what they are accused of?

No matter what they are accused of. This does not happen in countries where there are independent courts. The arrests of bitcoin users place where it all depends on what the authorities want. Most often traders or users are charged with tax evasion or illegal banking operations. Theoretically, each of us risks when changing the bitcoins to Fiat.

More scenarios like this might happen in the future, of course officials wants to regulate crypto currency as they are seeing it's potential of exceeding fiat currency. Since centralizing it is merely impossible having this kind of regulation is the solution that they are using.

[warrior333]

I know how the police arrested the miners for the fact that they used the equipment to transfer secret information. Nonsense! But in order to prove it you need to hold the expertise that may last a year or more. But it is not known in what state will return the equipment. No one checked its performance at the time of arrest. Then offer a bribe to expedite the process. And this is only one case. There are other cases.

[gregall]

makes me sad that people simply trading bitcoin went to prison. they don't deserve that at all and I hope countries come to this conclusion.

[entrepmind23]

I did not understand what they are accused of?

No matter what they are accused of. This does not happen in countries where there are independent courts. The arrests of bitcoin users place where it all depends on what the authorities want. Most often traders or users are charged with tax evasion or illegal banking operations. Theoretically, each of us risks when changing the bitcoins to Fiat.

Yes there is risk that the government can charge people with something if bitcoin is illegal in their country. There are those countries that has neutral stand towards bitcoin, not declaring it as illegal but not regulated as well. For these countries, I think it is safe to transact with bitcoin as long as I can't violate any existing laws that can be treated as illegal such as money laundering as long as I have proof of my source of income. As for Nepal, bitcoin is illegal in their country so it is not surprising that authorities act when they knew that some of their people are operating bitcoin exchange. Nepal is known to have a corrupt government so they want to have control of the flow of money and bitcoin is one that can't be controlled so they openly stated that it is illegal.

[tweetbit]

It’s sadden me how Nepalis government officials are greedy and manipulated by they’re financial institutions. Bankers might have to do with it and there’s nothing we can do to stop it but to careful to our own country when this regulation and banning start to spread on our own backyards.