Cyber Crime & Data Privacy: Navigating the Digital Law of Nepal (2025)

The Rise of Digital Policing in Nepal

As Nepal moves towards a “Digital Nepal” framework, the legal system is catching up—and biting back. The Cyber Bureau of Nepal Police has become one of the most active enforcement units, and “Cyber Crime” is now a catch-all term for offenses ranging from online harassment to banking fraud.

If you use social media, run an online business, or invest in digital assets, you are operating under the Electronic Transactions Act 2063 (ETA).

1. Common Cyber Offenses & Penalties

The ETA is strict. Unlike civil cases, cyber crime cases often involve immediate arrest and detention for investigation.

A. Online Defamation / Harassment (Section 47)

This is the most “misused” and dangerous section.

• The Offense: Posting material on social media (Facebook, TikTok, Twitter) that hatefully harasses, defames, or displays immoral behavior towards others.
• The Penalty: Up to 5 Years in Jail and/or NPR 1 Lakh fine.
• Reality Check: A simple angry status or a “call-out” post can land you in police custody if the other party files a complaint.

B. Banking Fraud & Phishing

With the rise of eSewa, Khalti, and ConnectIPS, financial fraud is rampant.

• The Offense: Unauthorized access to someone’s banking credentials or using phishing links to steal money.
• The Penalty: Prosecution under both the Banking Offense Act and ETA, leading to double jeopardy in terms of fines and jail time.

C. Cryptocurrency & Bitcoin

Despite global trends, crypto trading remains Illegal in Nepal.

• The Law: Nepal Rastra Bank has banned all virtual currency trading.
• Consequence: Arrests for “Hundi” and foreign exchange misappropriation.

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2. The New Privacy Act 2075: Your Data Rights

While the ETA punishes you, the Privacy Act 2075 protects you. It is Nepal’s “GDPR” (albeit smaller).

Key Protections for Citizens:

1. Consent is King: No one can collect your personal data (photo, phone number, medical records) without your explicit consent.
2. CCTV Surveillance: Installing CCTV cameras in private spaces (like bathrooms or changing rooms) or sharing CCTV footage publicly without consent is a criminal offense.
3. Data Breaches: If a company (like an ISP or Hospital) leaks your private data, you can sue them for compensation.

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3. What to Do If You are a Victim?

If you are a victim of online harassment (“Character Assassination”) or fraud:

1. Do NOT Delete: Take screenshots of the posts/chats immediately. URL links are crucial.
2. File at Cyber Bureau: You can file a complaint at the Cyber Bureau (Bhotahity, Kathmandu) or via their email reporting system.
3. Don’t Engage: Blocking the harasser is better than replying, which can be used against you.

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4. What to Do If You are Accused?

If the police call you for a “Cyber Inquiry”:

• Don’t Ignore It: They can track your IP address. Cooperation is usually better than absconding.
• Legal Counsel: Section 47 cases are non-bailable during the investigation phase in some districts. You need a lawyer immediately to argue for bail.
• Intent Matters: Your lawyer will argue on “Criminal Intent” (Mens Rea). Did you mean to harm, or was it a misunderstanding?

Conclusion

The digital world in Nepal is not a lawless wild west. The Electronic Transactions Act is a powerful tool—both for protection and prosecution. Whether you are a business handling customer data or an individual voicing opinions online, awareness of these boundaries is your best defense.

Disclaimer: Cyber law cases require immediate technical and legal expertise. For urgent bail hearing or cyber defense, contact our 24/7 hotline.