By FutureLaw Desk
Bangladesh Bank, the central bank of Bangladesh reiterated its position against the use of Bitcoin i.e. cryptocurrencies in Bangladesh. In a cautionary notice published on December 24, 2017, on the website of Bangladesh Bank (attached below), the Bank warned about the legal implications of using Bitcoin and other cryptocurrencies. The notice was also published in national media as a public advisory notice.
Bangladesh Bank asserts that the Foreign Exchange Regulation Act, 1947 does not support the use of such currencies either and online transactions in these currencies with unnamed people or people with pseudonyms may violate the Money Laundering Prevention Act, 2012. It also states that, Bitcoin’s transactions take place through online-based networks, which is not approved by any central authority or by the payment system that controls authority. Therefore, the clients may be affected.”
Previously, Bangladesh Bank issued a similar notice in September 2014. The announcement came just within a month of the formation of Bitcoin Foundation Bangladesh.
Payments under Bitcoin system work peer-to-peer without a central repository or administrator. It is gaining popularity in almost every corner of the world. As of now, Bangladesh is one of the few countries which persisted the ban on cryptocurrencies.
Interestingly, when the Bitcoin Foundation announced its first affiliate group in Asia on August 16, 2014, Bangladesh (i.e. the Bitcoin Foundation Bangladesh) became the latest local advocacy group to join its international network.
See the notice from Bangladesh Bank attached –[gview file=”http://futrlaw.org/wp-content/uploads/2017/12/dec242017_cautionarynotice_bitcoin.pdf”]