Bangladesh Bank keeps ban on cryptocurrency trading and transfers in force

Bangladesh Bank has kept in force the ban on transactions, buying and selling, exchange and transfer of cryptocurrency or virtual currency in the country. There is also no scope to assist any person or institution in such activities.

The central bank issued a notification on the matter on Thursday (29 October). It will remain effective for one year from the date of issue.

Under the existing instructions, banks and financial institutions have been told to exercise caution on this matter. They have also been told to strengthen monitoring to stop cryptocurrency transactions through customer accounts.

The new instructions say that the consolidated policy on foreign-exchange management and operations includes directions on foreign-exchange rates and report submission, transactions of authorised dealer (AD) banks with Bangladesh Bank, payment and settlement under the Asian Clearing Union (ACU) system, foreign-currency accounts, open position limits, nostro account reconciliation, forward transactions, swaps and hedging of commodity price risk in import trade. The ban on the exchange, transfer and transaction of virtual assets and virtual currency has also been included in this policy.

Earlier, in a circular of its Foreign Exchange Policy Department issued on 15 September 2022, Bangladesh Bank stated that transactions from Bangladesh, into Bangladesh or within Bangladesh for the purpose of acquiring virtual assets and virtual currency are not permitted. Later, on 12 October of the same year, banks were instructed to increase prevention and monitoring of such transactions.

Bangladesh Bank's instructions state that virtual currency is not a recognised currency under the Foreign Exchange Regulation Act of 1947. There is no sovereign state guarantee behind these assets. As a result, their value can fluctuate rapidly and investors may face the risk of financial loss.

Despite the ban, the use of this online-based currency has been growing in the country, according to a recent report. The international blockchain analysis firm Chainalysis analysed data from 117 countries and published 'The 2026 Geography of Crypto Report'.

According to that report, Bangladesh ranks 56th in the world this year in grassroots-level cryptocurrency use. Neighbouring India ranks sixth, Pakistan 25th and Sri Lanka 82nd.