2.7 Tokenomics and Taxation: Navigating the Tax Implications of Tokenized Assets

Tokenized assets (blockchain tokens representing value — payment tokens, utility tokens, security tokens) raise four tax questions: 1. Characterization — is a token's disposal a capital receipt or business income? 2. Valuation — the Nepali-rupee value of a volatile asset at each taxable moment. 3. Traceability — pseudonymous wallets challenge source-tracking; exchanges' reporting becomes the audit's spine. 4. Timing — is a token-to-token exchange a realization event? Nepal's position is restrictive on crypto dealing (the central bank's prohibition regime), which makes the tax questions mostly academic domestically but essential to study for the digital economy's borderless facts. The drafter's response type: characterization rules, information-reporting rules for intermediaries, and clear realization events.