Bangladesh -- Regulatory Status Regulatory Overview

Bangladesh maintains a highly restrictive and prohibitory stance on cryptocurrencies and virtual assets. It is effectively an outright ban on the trading, holding, and facilitation of cryptocurrency transactions within the country.

Regulatory Approach

• Outright Ban/Prohibitory: Bangladesh has not implemented a regulatory framework to license or facilitate crypto activities. Instead, it has actively prohibited them, primarily citing concerns over money laundering, terrorist financing, foreign exchange control, and consumer protection. Cryptocurrencies are not recognized as legal tender or legitimate financial instruments.

Primary Regulatory Bodies

1. Bangladesh Bank (BB): The central bank is the primary authority responsible for monetary policy, foreign exchange control, and issuing warnings regarding cryptocurrencies. It has consistently reiterated the illegal status of virtual assets.
   • URL: https://www.bb.org.bd/
2. Bangladesh Financial Intelligence Unit (BFIU): An independent unit of the Bangladesh Bank, the BFIU is responsible for receiving and analyzing Suspicious Transaction Reports (STRs) and Suspicious Activity Reports (SARs) related to money laundering and terrorist financing. They would investigate any illicit activities involving virtual assets.
   • URL: https://www.bfiu.org.bd/ (Often accessible via Bangladesh Bank's site)
3. Bangladesh Securities and Exchange Commission (BSEC): While not directly regulating crypto (due to the ban), the BSEC is the capital market regulator. If crypto were ever to be considered securities or regulated as such, they would be involved. They have also issued warnings.
   • URL: https://www.sec.gov.bd/
4. Law Enforcement Agencies (e.g., Cyber Crime Unit, CID): These bodies are responsible for enforcing existing laws, including those pertaining to money laundering, foreign exchange violations, and digital fraud, which can be applied to cryptocurrency-related offenses.

Key Legislation and Directives

There is no specific "Cryptocurrency Act" in Bangladesh. The prohibition is enforced through existing laws and circulars/warnings from regulatory bodies.

1. Bangladesh Bank Circular (December 2017):
   • Content: The Bangladesh Bank issued a press release/circular warning the public about the illegality and risks associated with Bitcoin and other cryptocurrencies. It explicitly stated that trading or facilitating transactions in cryptocurrencies is a punishable offense under existing laws.
   • Legal Basis Cited: The circular referenced the Foreign Exchange Regulation Act, 1947, and the Anti-Money Laundering Act, 2012.
   • Date: December 2017 (Specific circular number often hard to pinpoint for general public access, but widely reported by media at the time).
   • Reference (News reporting on the circular): https://www.thedailystar.net/business/bangladesh-bank-warns-against-bitcoin-1510255 (The Daily Star, reporting on BB's warning)
2. Foreign Exchange Regulation Act, 1947:
   • Relevance: This act governs all foreign exchange transactions. Since cryptocurrencies are not recognized as foreign currency by the central bank, any transaction involving them is considered an unauthorized foreign exchange dealing and is illegal.
   • URL (General Law Portal): https://bdlaws.minlaw.gov.bd/act-details-149.html
3. Anti-Money Laundering Act, 2012 (as amended):
   • Relevance: This act makes it illegal to engage in activities that conceal the origins of illegally obtained money. The anonymous or pseudo-anonymous nature of crypto transactions raises concerns about their potential use for money laundering, making any such activity punishable under this act.
   • URL (General Law Portal): https://bdlaws.minlaw.gov.bd/act-details-1090.html
4. Terrorism Prevention Act, 2009 (as amended):
   • Relevance: Similar to AML, concerns about terrorist financing via cryptocurrencies mean that any such activity would fall under this legislation.
   • URL (General Law Portal): https://bdlaws.minlaw.gov.bd/act-details-1002.html
5. Digital Security Act, 2018:
   • Relevance: While not crypto-specific, this act broadly covers offenses related to digital fraud, hacking, and cybercrime. It could potentially be used to prosecute individuals involved in crypto-related scams or illicit digital activities.
   • URL (General Law Portal): https://bdlaws.minlaw.gov.bd/act-details-1262.html

Current Stance on Crypto Trading and Exchanges

• Completely Prohibited and Illegal:
  • Trading: Buying, selling, holding, mining, or facilitating transactions in cryptocurrencies (like Bitcoin, Ethereum, etc.) is strictly prohibited for individuals and entities in Bangladesh.
  • Exchanges: There are no legally licensed or recognized cryptocurrency exchanges or trading platforms operating within Bangladesh. Any platforms claiming to operate locally are doing so illegally.
  • Penalties: Individuals found engaging in cryptocurrency activities could face legal penalties, including fines and imprisonment, under the Foreign Exchange Regulation Act, Anti-Money Laundering Act, and other relevant laws. The severity of the penalty would depend on the nature and scale of the offense.
  • Warnings: The Bangladesh Bank and other financial regulators periodically issue warnings to the public, cautioning against the risks of investing in or transacting with cryptocurrencies.

In summary, Bangladesh maintains one of the strictest anti-crypto stances globally, with no indication of a shift towards legalization or regulated trading in the foreseeable future.