Is crypto legal in Bangladesh?

Crypto is not legal in any recognized sense in Bangladesh. Bangladesh Bank does not treat it as legal tender, has warned people repeatedly not to trade it, and says crypto transactions may breach the country's foreign exchange and anti-money-laundering laws. There is no licensing system for crypto exchanges, and the central bank says it permits no support for businesses trading virtual assets.

What did the Bangladesh Bank crypto warning say?

The first warning came in September 2014. Bangladesh Bank asked everyone to stop trading bitcoin and similar currencies, saying bitcoin is not legal tender issued by any country. It said trading would breach the Foreign Exchange Control Act 1947 and the Money Laundering Act 2012, Prothom Alo reported.

A second notice, posted on the bank's website on December 27, 2017, repeated the message. It said virtual currencies are not authorized under the Foreign Exchange Regulation Act 1947, the Anti-Terrorism Act 2009 or the Money Laundering Prevention Act 2012, and that users could break money-laundering or terror-financing rules without meaning to.

Is crypto trading legal in Bangladesh?

No law creates a legal route to trade crypto, and the central bank asks people not to. In July 2021, reports of a confidential letter to police investigators suggested that simply owning crypto might not be a criminal offense. The letter, dated May 18, 2021, said owning or trading crypto is not recognized but did not appear to be a crime in itself, The Financial Express reported. It added that transactions could still be treated as crimes under the three laws above.

Bangladesh Bank responded on July 29, 2021 that its stance had not changed. It said no one can make a financial claim based on crypto, and asked individuals and companies to avoid trading, promoting or helping others deal in virtual currencies of all kinds, naming bitcoin, ether and XRP.

What does Bangladesh law say about crypto and foreign exchange?

The main legal hook is foreign exchange control. In a notice on September 15, 2022, during a dollar shortage, Bangladesh Bank said the Foreign Exchange Regulation Act's definition of currency does not cover virtual currencies. It said:

• Using foreign exchange to buy crypto is prohibited.
• Businesses must not accept export payments in crypto or keep export proceeds abroad in virtual assets.
• The bank does not permit support for businesses that exchange, transfer or trade virtual assets.

Because crypto moves across borders easily, it can be used to get around these controls, a concern that also drives rules elsewhere, as set out in crypto anti-money-laundering rules.

How does Bangladesh compare with its neighbors?

Bangladesh's approach is stricter than India's, where crypto is legal but heavily taxed, as described in how crypto is regulated in India. For the wider picture, see is cryptocurrency legal.

Rules differ by country and change often. Check Bangladesh Bank or a qualified professional for your own situation.