The law made during the Nineties is the base of Bitcoin, a cryptocurrency, being illegal in Nepal. The government must be open to adapting new technology. Innovation needs to drive policies not Is Bitcoin Mining Legal? Regulations From Around The World Aug 11, 2019 · Bitcoin mining is the process of updating the Bitcoin blockchain or the ledger. It is also the method through which new bitcoins enter the whole ecosystem. Bitcoin miners put their resources (time, electricity, equipment, computation, etc.) to validate new transactions and hence mine new ‘blocks’ (blocks are a group of transactions).