Bangladesh Crypto Ban: What Really Happened and How It Affects Users

When the Bangladesh crypto ban, a nationwide prohibition on cryptocurrency trading and usage enforced by the central bank in 2021. Also known as crypto trading restrictions in Bangladesh, it was never about technology—it was about control. The Bangladesh Bank declared digital currencies like Bitcoin and Ethereum as illegal for payments, exchanges, and even holding, claiming they threatened financial stability and enabled money laundering. But here’s the twist: the ban never stopped people from using crypto. It just pushed it underground.

What followed wasn’t silence—it was creativity. Users turned to peer-to-peer platforms like LocalBitcoins and Paxful, trading Tether (USDT) in cash with strangers in Dhaka cafes. Some used VPNs to access foreign exchanges like Binance or Bybit, while others relied on trusted friends to buy crypto on their behalf. The cryptocurrency regulation Bangladesh, the legal framework that prohibits banks and financial institutions from processing crypto-related transactions remains strict, but enforcement is patchy. Police have raided homes and arrested traders, but most cases are dismissed due to lack of clear evidence or public pressure. Meanwhile, the crypto exchange Bangladesh, any platform that facilitates buying or selling crypto within the country’s borders still doesn’t exist legally—yet dozens operate in the shadows, often run by former bank employees who know exactly how to avoid detection.

Why does this matter? Because the ban didn’t kill crypto—it made it riskier. People who lost money in scams or got trapped in fake exchanges had no legal recourse. No one could file a complaint with the central bank. No regulator stepped in. And when the taka dropped in value, many turned to crypto not for speculation, but survival. Remittance workers, students, and small business owners started using USDT to send money abroad without paying 15% fees to traditional services. The digital currency ban, the official policy that labels crypto as a threat to monetary sovereignty is still on paper, but in practice, it’s a loophole with millions of people crawling through it.

What you’ll find below are real stories, breakdowns of how people trade crypto in Bangladesh despite the ban, and warnings about the scams that thrive in this gray zone. These aren’t theoretical guides—they’re survival tips from people who’ve been arrested, had their phones seized, and still kept trading. If you’re in Bangladesh and wondering if crypto is safe, or if you’re outside trying to understand the real impact of this ban, this collection gives you the unfiltered truth.