CAN Federation calls for secure digital marketplace

By A Staff Reporter,Kathmandu, Jan. 14: CAN Federation, the umbrella organisation of Nepal’s information technology sector, has said to the government that the country’s digital marketplace should be made secure, simple and sovereign.

Submitting its official policy recommendations on the proposed E-commerce Directives 2025 through the Information Technology Development Committee of the Federation of Nepalese Chambers of Commerce and Industry (FNCCI), it stressed that the growth of Nepal’s e-commerce sector rests on three key pillars: security, simplicity and sovereignty.

It recommended that the government go beyond general data protection provisions and introduce a National Minimum-Security Standard (NMSS) in terms of security. It has also proposed awarding a 'Trust Seal' to platforms that comply with the standard in order to enhance consumer confidence, presenting the recommendations, CAN Federation Senior Vice-President and cyber security expert Chiranjivi Adhikari said.

To improve simplicity, the CAN Federation has called for an end to the requirement for businesses to visit multiple offices for registration. Instead, it has advocated for an integrated, API-based registration system that would automatically synchronise PAN, VAT and OCR details with government portals.

Likewise, on sovereignty, the Federation has proposed providing tax rebates to companies that host Nepali citizens’ data within domestic data centres, in order to ensure data security within national borders.

The CAN Federation has also raised concerns that the strict punitive provisions included in the draft directive could create a climate of fear among start-ups. It has suggested removing the proposed prison sentences of three to five years for platform failures and replacing them with graded financial penalties.

For small and medium enterprises (SMEs), it termed the existing 35-day registration period impractical, calling instead for a 90-day 'technical support period'. It has further recommended the inclusion of a 'safe harbour' provision, under which platforms would not be held liable for individual product defects of sellers, provided due diligence has been carried out.

Highlighting the need to make Nepali e-commerce globally competitive, the Federation has underscored the importance of resolving challenges related to international digital payments. It has proposed forming a task force in coordination with Nepal Rastra Bank and other relevant agencies, as well as introducing a fee holiday for small digital transactions.

Chair of FNCCI's Information Technology Development Committee Shakti Kumar Begani and the committee’s vice-chair welcomed the initiative, describing it as timely and constructive.