Nepal has established a legal pathway for cryptocurrency donations to support disaster relief, using a US-based off-ramp system that converts digital assets into dollars before funds enter the country. The arrangement bypasses Nepal’s domestic ban on cryptocurrency trading and use, allowing overseas donors to contribute without sending crypto directly into Nepali financial systems.
Under the new structure, donors worldwide can send digital currencies through platforms like Ethereum, Polygon, and Solana. US financial institutions then convert those assets into US dollars, which are transferred via SWIFT to Nepal’s official disaster relief account. As of Monday, approximately USD 500 from crypto-to-fiat conversions had reached the government fund, according to Finance Minister Swarnim Wagle. Meanwhile, NepalRelief.org has collected USD 174,831 from donors.
The channel was developed in response to the deadly Bhotekoshi river floods. Polygon, Cross River Bank, and Engage Nepal collaborated to create NepalRelief.org, which uses Polygon’s Open Money Stack and Coinme for technical processing. Engage Nepal receives contributions through a publicly disclosed wallet and conducts audits. Cross River Bank then converts the assets into dollars and sends the funds through SWIFT.
This approach keeps cryptocurrency entirely outside Nepal’s financial system. Nepali banks receive conventional currency rather than digital assets, ensuring compliance with local regulations. The project began after crypto companies and communities abroad sought a legal way to support flood victims. Cross River Bank executive Pravesh Rijal and Polygon Foundation founder Sandeep Nailwal discussed the proposal on August 27, focusing on converting crypto in the United States before sending money to Nepal.
After Polygon, Cross River Bank, and Engage Nepal agreed on the structure, they approached Nepal’s government through Finance Minister Wagle. The government issued a no-objection to the arrangement. Cross River Bank assigned a 25-member team to complete the legal and technical work, launching NepalRelief.org within 24 hours.
Other blockchain organizations have also stepped up. Ripple announced USD 300,000 for emergency response, with World Central Kitchen and Mercy Corps using those funds for food, drinking water, and sanitation supplies. The Solana Foundation and NFT marketplace Mallow raised USD 166,946 in USDC by auctioning advertising slots on Solana’s official X account. Solana will route proceeds to Nepal’s government relief fund through Engage Nepal. Blockchain for Impact has pledged USD 100,000.
This model differs from previous crypto relief efforts that faced legal barriers inside Nepal. By keeping digital assets abroad and transferring only regulated fiat currency, the system offers a potential blueprint for other countries that restrict cryptocurrency but wish to accept crypto-funded humanitarian aid.
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