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As of 2025, owning or trading cryptocurrency in Bangladesh isn’t explicitly illegal - but it might as well be. The country’s financial regulators have spent over a decade sending one clear message: crypto is a threat to financial stability, and using it comes with serious risks. While there’s no single law that says "crypto is banned," every warning, arrest, and policy shift since 2014 has made it clear that the government will treat any crypto activity as a violation of existing anti-money laundering and foreign exchange rules.
How Bangladesh Stopped Crypto in Its Tracks
The Bangladesh Bank, the country’s central bank, issued its first public warning about Bitcoin in 2014. At the time, few people paid attention. But the warnings kept coming - each one sharper than the last. By 2017, the bank declared that cryptocurrency transactions were illegal because they enabled money laundering and terrorist financing. That wasn’t a new law. It was an interpretation of older ones: the Foreign Exchange Regulations Act of 1947 and the Anti-Money Laundering Act of 2012.
Here’s the catch: those laws were never written for digital currencies. They were designed to stop people from smuggling cash out of the country or hiding dirty money in shell companies. But regulators applied them anyway. Why? Because crypto transactions are hard to trace. Wallets don’t need IDs. Transactions skip banks. And TRC20 tokens move fast across borders without leaving a paper trail.
Who’s Really in Charge?
The Bangladesh Bank leads the charge, but it’s not alone. The Financial Intelligence Unit (FIU) watches for suspicious transfers. The Ministry of Finance holds the power to draft new laws - and so far, it hasn’t moved to legalize crypto. The Criminal Investigation Department (CID) handles arrests. And the ICT Act, meant to regulate digital crime, is used to shut down crypto mining rigs.
In 2024, police raided several homes in Dhaka. Inside, they found racks of Bitcoin mining equipment plugged into residential power lines. The owners were arrested. The government called it a violation of anti-money laundering laws. No one was charged under a "crypto law" - because there isn’t one. Instead, they were charged under the 2012 AML Act, which carries jail time.
Why Mining Is a Hard No
Crypto mining isn’t just discouraged - it’s explicitly illegal. The government views it as a waste of electricity and a gateway to financial crime. Power consumption from mining operations is unregulated, unmonitored, and often hidden behind fake business names. In 2024, authorities seized over 300 mining rigs in just six months. Many were running on residential grids, draining power from neighborhoods while generating zero tax revenue.
Compare that to Pakistan, which in May 2025 launched the Pakistan Digital Assets Authority and allocated 2,000 megawatts of electricity for Bitcoin mining. Bangladesh? No such plan. Instead, it’s doubling down on enforcement.
The Blockchain Paradox
Here’s where things get confusing. In 2020, the Bangladesh Computer Council released a National Blockchain Strategy. It praised blockchain for land records, digital IDs, and government services. The government even piloted blockchain-based systems for public procurement and voter verification.
So why is blockchain good for the state but bad for citizens? The answer is control. The government wants to use blockchain to track its own systems - not let people trade assets outside its oversight. This contradiction isn’t unique, but in Bangladesh, it’s extreme. You can use blockchain to prove you own your house - but not to buy Bitcoin.
What Happens If You Get Caught?
If you’re caught trading crypto, mining, or even holding digital assets in Bangladesh, you won’t necessarily be arrested - but you could be. The Bangladesh Bank says owning crypto isn’t a crime by itself. But if you use it to move money abroad, hide income, or pay for illegal goods, you’re violating the Foreign Exchange Act and the AML law.
Penalties include:
- Fines up to 10 times the value of the transaction
- Confiscation of equipment (mining rigs, computers, phones)
- Up to 7 years in prison under Section 5 of the Anti-Money Laundering Act
- Blacklisting from banking services for up to 10 years
In 2023, a Dhaka-based trader was sentenced to four years after transferring $180,000 in USDT to a foreign exchange broker. The court ruled it was an illegal foreign currency transaction - not a crypto crime, but the result was the same.
Taxes? No Clear Rules
There’s no crypto tax law in Bangladesh. But the National Board of Revenue (NBR) still expects you to report crypto gains under the Income Tax Ordinance of 1984. If you sell Bitcoin for profit, you’re supposed to declare it as capital gains. But how do you prove it? Banks don’t track crypto. Wallets don’t issue statements. And the NBR doesn’t have tools to trace on-chain activity.
Most people don’t report. That’s why the government doesn’t enforce it - yet. But if a major case surfaces, the NBR could start demanding transaction histories. That’s when things get dangerous.
Why Enforcement Is Failing
Despite arrests and warnings, crypto use hasn’t disappeared. It’s gone underground. People use peer-to-peer apps like LocalBitcoins and Paxful. They trade through Telegram groups. They use anonymous wallets and mixers. Some even use remittance agents who accept crypto on one end and pay out in taka on the other.
Experts estimate that $500 million to $1 billion in crypto flows through Bangladesh annually - all outside the banking system. The government can’t stop it. Not because they don’t want to. But because they lack the tools. Unlike the U.S. or EU, Bangladesh doesn’t have a crypto monitoring platform. It doesn’t require exchanges to register. And it doesn’t share data with international agencies.
This puts Bangladesh out of step with the Financial Action Task Force (FATF). The FATF requires countries to regulate virtual asset service providers. Bangladesh doesn’t. That makes it harder for banks to do business with foreign partners. It also increases the risk of being placed on the FATF gray list - which would hurt remittances, foreign investment, and global trade.
The Bigger Picture: Innovation vs. Control
Bangladesh is a global leader in mobile money. bKash handles over $10 billion in transactions every year. Millions use digital wallets. But when it comes to crypto, the government sees risk - not opportunity. That’s a choice. One that prioritizes control over innovation.
Compare that to India, which taxed crypto but didn’t ban it. Or Thailand, which licensed exchanges and built regulatory sandboxes. Bangladesh chose to shut the door and throw away the key.
For now, the message is simple: if you’re using crypto in Bangladesh, you’re doing it at your own risk. The law isn’t clear. The penalties are harsh. And the enforcement is getting tougher.
What’s Next?
Will Bangladesh ever legalize crypto? Probably not soon. The Ministry of Finance has shown no interest in drafting new laws. The Bangladesh Bank remains firmly opposed. And with Pakistan moving toward a national crypto reserve, Bangladesh risks becoming an outlier in South Asia - a place where digital finance is welcomed for government use but punished for personal use.
For now, the only safe option is to avoid crypto entirely. If you’re holding it, sell it. If you’re mining, shut it down. If you’re trading, stop. The risks aren’t theoretical. People are going to jail. Assets are being seized. And the government isn’t backing down.
Is it legal to own cryptocurrency in Bangladesh?
There’s no law that says owning cryptocurrency is illegal. But the Bangladesh Bank has declared that crypto has no legal status, and using it for transactions violates the Foreign Exchange Regulations Act and Anti-Money Laundering Act. So while you won’t be arrested just for holding Bitcoin, any trade, transfer, or mining activity can lead to criminal charges.
Can you be jailed for using crypto in Bangladesh?
Yes. If you’re caught using cryptocurrency to launder money, transfer funds abroad illegally, or mine without authorization, you can be charged under the Anti-Money Laundering Act of 2012. Penalties include up to seven years in prison, fines up to 10 times the transaction value, and confiscation of equipment. Arrests for mining occurred in 2024, and convictions followed.
Is crypto mining allowed in Bangladesh?
No. Crypto mining is explicitly illegal in Bangladesh as of 2025. Authorities treat mining operations as violations of the Anti-Money Laundering Act and the ICT Act. Police have raided homes and seized mining rigs in Dhaka and Chittagong. Using residential electricity for mining can also lead to utility penalties.
Does Bangladesh tax cryptocurrency?
There’s no specific crypto tax law. But the National Board of Revenue applies the Income Tax Ordinance of 1984 to crypto profits. If you sell Bitcoin for a gain, you’re legally required to report it. However, enforcement is rare because the government lacks tools to track on-chain transactions. That could change if a major case is brought forward.
Why does Bangladesh allow blockchain but ban crypto?
The government supports blockchain for public services - like land records and digital IDs - because it increases transparency and reduces corruption. But it sees cryptocurrency as a threat to financial control. Blockchain can be monitored and restricted. Crypto, especially decentralized coins, cannot. This creates a double standard: tech is good when the state controls it, dangerous when citizens use it.
Is Bangladesh in danger of being blacklisted by FATF?
Yes. Bangladesh currently doesn’t comply with FATF Recommendation 15, which requires countries to regulate virtual asset service providers. Without proper oversight of crypto exchanges and wallet providers, Bangladesh risks being placed on the FATF gray list. That would make international banking harder, reduce remittances, and damage foreign investment.
How do people still use crypto in Bangladesh?
Despite the ban, crypto flows through informal channels. People use peer-to-peer apps like Paxful, Telegram groups, and trusted intermediaries who convert crypto to taka. Some use TRC20 wallets to avoid bank monitoring. Others trade through remittance agents who accept crypto on one side and pay cash on the other. Enforcement can’t catch everything - but the risk remains high.
What’s the difference between Bangladesh and Pakistan’s crypto policies?
Pakistan legalized and is actively regulating crypto. In 2025, it created the Pakistan Digital Assets Authority, allocated 2,000 megawatts of power for mining, and formed a National Crypto Committee. Bangladesh bans crypto outright and uses old financial laws to punish users. Pakistan sees crypto as an economic opportunity. Bangladesh sees it as a threat to control.
Sierra Rustami
November 4, 2025 AT 17:40This is why America needs to stop coddling authoritarian regimes that think they can control technology. Bangladesh is just scared of people having financial freedom.
Hope Aubrey
November 5, 2025 AT 21:41Let’s be real - if your government bans crypto but uses blockchain for land records, they’re not protecting citizens, they’re protecting their own power. Classic move.
Abelard Rocker
November 6, 2025 AT 12:56Oh, so now it’s a paradox? No, it’s not. It’s called authoritarian capitalism. The state wants to own the ledger, not share it. They don’t want decentralized trust - they want centralized control wrapped in fancy tech jargon. Blockchain for the regime, jail time for the people. It’s not a contradiction, it’s a feature. The same governments that lecture you about democracy lock down your wallets like they’re guarding the crown jewels. And let’s not pretend they’re doing it for ‘financial stability’ - they’re doing it because they can’t tax it, track it, or manipulate it. Meanwhile, Pakistan’s out here building crypto infrastructure like it’s the future. Bangladesh? Still trying to arrest teenagers with ASICs in their bedrooms. The only thing more absurd than the ban is the fact that anyone still believes it’ll work.
Noah Roelofsn
November 7, 2025 AT 04:37Bangladesh’s stance is a textbook case of regulatory overreach masquerading as prudence. The AML and Foreign Exchange Acts were never designed for decentralized digital assets - applying them retroactively is legally dubious at best. The government’s refusal to create a clear regulatory framework forces users into the shadows, which ironically increases the very risks they claim to mitigate. Compare this to Thailand’s sandbox approach or India’s tax-and-regulate model: they acknowledge crypto’s existence and seek to manage it. Bangladesh chooses denial, and in doing so, undermines its own financial integrity. The FATF gray list risk is real - and it’s self-inflicted.
andrew seeby
November 7, 2025 AT 20:44bro honestly i just want to buy some btc and chill but they’re out here raiding homes like it’s 1984 😭
Michelle Stockman
November 8, 2025 AT 13:42Of course they’re arresting miners. People who think they can outsmart the state with a bunch of GPUs deserve what they get.
Tara R
November 10, 2025 AT 08:32It’s not about crypto it’s about sovereignty and the rule of law. People who ignore financial regulations are just irresponsible.
Matthew Gonzalez
November 10, 2025 AT 21:32There’s a deeper truth here: control is the only religion left in many modern states. If you can’t tax it, monitor it, or command it - you label it dangerous. Crypto doesn’t threaten the economy. It threatens the myth that the state is the only legitimate source of value. That’s why they panic.
Ryan McCarthy
November 12, 2025 AT 18:37I get why Bangladesh is scared - crypto moves fast, and their institutions are still catching up. But punishing individuals instead of building infrastructure feels like fighting the future with a flashlight. Maybe they should invest in education and regulation instead of raids. People will find ways to use tech regardless - the question is whether the system adapts or collapses under its own rigidity.
Christopher Evans
November 14, 2025 AT 07:03The legal framework applied by Bangladesh is consistent with its existing statutory regime. While the policy may appear harsh, the absence of explicit legislation does not equate to permissiveness. Enforcement under existing anti-money laundering and foreign exchange statutes is legally defensible and reflects a prudent approach to systemic financial risk.
Glen Meyer
November 14, 2025 AT 20:33They’re not banning crypto - they’re banning treason. If you’re sending money out of the country without the state’s permission, you’re a traitor. End of story.
Missy Simpson
November 15, 2025 AT 21:17it’s kinda sad but also kinda brave of them to stand their ground 🙌 maybe one day they’ll see crypto as a tool, not a threat 💛
Pranjali Dattatraya Upadhye
November 16, 2025 AT 18:17Wait - I thought you said this was about Bangladesh? Why are you comparing it to Pakistan? That’s like comparing a library to a wildfire and saying one’s better. Different contexts, different priorities. Stop trying to turn this into a geopolitical debate.
Abelard Rocker
November 16, 2025 AT 22:39Oh, so now it’s not a debate because you don’t like the comparison? That’s the exact same mindset that got Bangladesh here. If you can’t analyze context, you can’t solve problems. Pakistan’s doing what every emerging economy should: leveraging tech to bypass broken systems. Bangladesh is clinging to 1947 laws like they’re sacred scripture. This isn’t about ‘different priorities’ - it’s about courage versus fear. One country is building the future. The other is burying it under paperwork and prison cells.
Kyung-Ran Koh
November 18, 2025 AT 10:32They’re not banning blockchain - they’re banning decentralization. The state wants to be the only node. That’s not regulation. That’s digital feudalism.
andrew seeby
November 19, 2025 AT 09:48the fact that they’re using the 1947 foreign exchange act to jail people for btc is wild 😅 like… who wrote that law anyway? grandpa?
Alexis Rivera
November 19, 2025 AT 18:11It’s ironic that Bangladesh, a country that leads the world in mobile financial inclusion through bKash, is so resistant to the next evolution of digital finance. The same innovation that empowered millions to bypass traditional banking is now being denied because it’s decentralized. This isn’t about security - it’s about control. And control, in the long run, always loses to innovation. The state can arrest miners, but it can’t arrest the desire for financial autonomy. History won’t remember Bangladesh for its enforcement. It’ll remember it for missing the boat.