There is no specific law in Nepal that directly criminalizes sex work. However, many sex workers have experienced arbitrary detention by law-enforcement authorities. The Human Trafficking and Transportation (Control) Act, 2007 (HTTCA) criminalizes pimps and clients, but not sex workers directly. However, the Act was overinclusive and often criminalized women engaged in voluntary sex work. The new Criminal (Code) Act 2017 criminalizes advertising and providing facilities for sex work in the section concerning crimes against the public good. These laws are used to prosecute sex workers. Two identity-based associations (IBAs) emphasize the importance of decriminalization, but do not support the legalization of sex work. A licensing system, if introduced under legalization, may exclude the most vulnerable sex workers, including housewives, migrants, and sexual minorities, who are secretly engaged in the business. I conclude that ongoing advocacy of IBAs should seek to provide safe working environments for sex workers in Nepal.