Kathmandu: Nepal Rastra Bank (NRB) has warned that networking businesses including cryptocurrency are cheating customers. The National Bank of Nepal (NBN) on Tuesday issued a statement saying that most of the networking businesses have been found to be cheating customers in another country by mobilizing transactions and members from one country.

In the information issued by the National Bank, it is mentioned that if there is a dispute in such transactions, the investors will not get legal remedy and will not even get compensation. In Nepal too, organizations like Josial One, Crowd, Solemax Global have been claiming to be a marketing company in various media.

The multi-level marketing (MLM) business is also benefiting from the growth in cryptocurrency, according to the National Bank. Such businesses have been found to be tempted by high returns in the short term, encouraging new customers, encouraging new members to buy cryptocurrencies through their member customers, and paying commissions for selling through their network.

Although some countries have allowed businesses to accept cryptocurrencies as payment, no country other than El Salvador has recognized cryptocurrency as a legal tender, so there is no legal obligation for other countries to accept cryptocurrency as payment.