Bangladesh to Implement Crypto Regulations in 2024

The dynamic realm of virtual assets has been gaining significant traction in Bangladesh lately. With the increasing adoption of cryptocurrencies, it is clear that this innovative technology is gaining popularity among individuals, businesses, and buyers in the country. There are several factors contributing to the rapid growth of the crypto sector in Bangladesh.

Advertisement

In this article, we will explore the ongoing regulations surrounding cryptocurrencies in Bangladesh and their impact on the country’s crypto landscape.

Cryptocurrency Adoption in Bangladesh

According to the 2023 global adoption index, Bangladesh is ranked 17th. Various factors have contributed to the growing acceptance and usage of cryptocurrencies in the country. One of the main drivers is the development of knowledge and easy access to the internet, which has made it more convenient for individuals to participate in the crypto market. There are numerous exchanges and platforms that facilitate the buying and selling of digital currencies in Bangladesh.

Furthermore, cryptocurrencies have also played a significant role in promoting financial inclusion in the country.

Cryptocurrency Regulations in 2024

In 2020, the Government of the People’s Republic of Bangladesh released the National Blockchain Strategy, recognizing the crucial importance of technologies like blockchain. However, cryptocurrencies are still considered illegal in Bangladesh. Financial institutions are prohibited from facilitating Bitcoin transactions.

In 2017, Bangladesh imposed a ban, warning against the use of Bitcoin and other cryptocurrencies as it was deemed a punishable offense that could lead to imprisonment.

Despite the global expansion and recognition of cryptocurrencies, Bangladesh has yet to embrace digital currencies. There are two primary reasons behind the government’s decision not to legalize crypto in the country. Firstly, the volatility of cryptocurrency’s value and the lack of anonymity associated with it raise concerns. Secondly, the government fears that it may have a detrimental impact on Bangladesh’s economy.

Although the government holds a hostile view towards crypto, it has rendered cryptocurrencies illegal under the Foreign Exchange Regulation Act. The act stipulates that individuals involved in cryptocurrency-related activities in Bangladesh will face severe consequences under the Foreign Exchange Regulation Act of 1947, the Anti-Terrorism Act of 2009, and the Money Laundering Prevention Act of 2012.

Taxation

Due to the ban on cryptocurrencies in Bangladesh, there is currently no taxation framework in place for cryptocurrencies. However, it is possible that a regulated crypto framework will be introduced in the near future.

Legal Status Overview

As we have discussed, the government of Bangladesh does not have a favorable stance on cryptocurrencies. Here is an overview of how crypto entities are treated in Bangladesh:

Bitcoin: Illegal
NFTs: Illegal
Trading: Illegal
DeFi: Illegal
Mining: Illegal

Future Prospects and Challenges

We are all aware of the growing trajectory and global adoption of digital currencies. There may come a time in the future when the government has no choice but to legalize cryptocurrencies in Bangladesh. However, the government must be prepared with effective plans to ensure that it does not hinder the nation’s economy or burden its citizens with ineffective laws.

Given the significant interest in cryptocurrencies among the citizens of Bangladesh, we hope for the establishment of a robust regulatory framework to govern cryptocurrency in the future.

Tags: Crypto Regulations