Trading, Owning Cryptocurrency Illegal: Bangladesh Bank

Bangladesh Bank has stated that ownership, storage or transaction of virtual currency 'cryptocurrency' like Bitcoin is illegal. Therefore, to avoid financial and legal risks, the financial sector regulator has warned to refrain from providing or promoting transactions or support in virtual currencies like Bitcoin.

This information was given in a notification of Bangladesh Bank on Thursday (July 29).

Bangladesh Bank said, ‘Recently, reports published in some media on virtual currency cryptocurrency have come to the notice of Bangladesh Bank. For the confidential use of the investigating officer of a particular case, part of the opinion sent in a letter from Bangladesh Bank has been fragmented in some media which is by no means generally public.’

The central bank says, ‘Recently, various news outlets and the internet have reported that online-based virtual currencies (Bitcoin, Etherium, Ripple, Litcoin) are being exchanged. These virtual currencies are ‘not’ legal tender issued by the legitimate authorities of any country. So on the contrary, no financial claim is recognized. Transactions in these currencies are not approved by Bangladesh Bank or any other regulatory body. Transacting in virtual currency with an unnamed or pseudonymous partner online could be a violation of anti-money laundering and anti-terrorism financing laws.

The statement further said, "No virtual currency or cryptocurrency is approved by Bangladesh Bank." The central bank has again instructed all individuals and entities to refrain from trading in or supporting any type of cryptocurrency or virtual currency (such as Bitcoin, Ethereum, Ripple, etc.) and to avoid potential financial and legal risks.

‘Customers may face a variety of risks, including the potential financial and legal risks of virtual currency, as they are not recognized by any legitimate entity. In this situation, the central bank has warned to refrain from trading in virtual currencies like Bitcoin to avoid financial and legal risks.