Cryptocurrency in Bangladesh: banned by laws older than bitcoin
In short. Bangladesh assembled its crypto prohibition from laws written long before crypto existed. The central bank told banks and financial institutions to stay away from it in a 2017 circular, and the authorities apply the foreign exchange regulation act of 1947 and the money laundering prevention act to the activity itself. No crypto tax framework exists, because nothing lawful is there to tax. Officials have given no sign of reconsidering.
- STATUS
- Prohibitedbanks barred since 2017, exchange law applied
- LEGAL BASIS
- Foreign exchange law of 1947plus the anti money laundering act
- BANKS
- May not facilitatecrypto transactions of any kind
- CRYPTO TAX RULES
- Noneno framework has been introduced
- ENFORCEMENT
- Licence revocation, prosecutionfor facilitating transfers
- LEGAL TENDER
- Nothe taka stays the only legal money
A prohibition assembled from older laws
The central bank issued Circular No. 17 in 2017, prohibiting banks and financial institutions from facilitating cryptocurrency transactions, and the authorities reached for two existing laws to cover everyone else. Bangladesh has passed no crypto statute of its own.
The foreign exchange regulation act dates from 1947 and controls dealings in foreign currency. The money laundering prevention act supplies the second layer. Between them, buying or selling crypto counts as an unauthorised transaction, and any entity that helps move money for it risks losing its licence and facing prosecution.
Morocco, Tunisia and Algeria built their prohibitions the same way, out of exchange control law. Bangladesh differs by adding the money laundering statute, which raises what a prosecution can carry.
No tax framework, and no reason for one
Bangladesh has introduced no tax rules for digital assets, and by early 2026 that had not changed.
The absence follows from the prohibition: a state that treats an activity as unlawful has no reason to set a rate for it. Guides that quote a Bangladeshi crypto tax percentage are describing rules nobody wrote.
Why people use it anyway
Bangladesh sends millions of workers abroad and receives one of the largest remittance flows in South Asia, and formal transfers cost money and take time.
Bangladeshis have filled that gap with peer-to-peer channels, foreign platforms and informal agents. Reporting through late 2025 described a market that keeps growing despite everything above, and the state has answered by warning that any entity facilitating crypto remittances risks revocation and prosecution.
What this means if you are moving there
Trading here is common and unlawful at the same time, and the second fact governs your position.
No Bangladeshi bank will process a crypto transaction, no local exchange holds any authorisation, and the laws behind the prohibition carry criminal consequences. How many people trade peer-to-peer tells you what the state can police, not what it permits. Get local advice before you arrive with holdings.
Allowed
- Hold taka, the only money with legal tender status here
- Read Circular No. 17 and the two acts the authorities apply
- Take Bangladeshi legal advice on holdings acquired before you arrived
- Follow the central bank, which is where any change of position would appear
Restricted
- Buying or selling crypto, which the foreign exchange law treats as unauthorised
- Asking a bank to facilitate a crypto transaction, barred since the 2017 circular
- Facilitating crypto remittances as a business, which risks licence revocation
- Expecting a tax rate to apply, since no crypto tax framework exists
How the rules took shape
The central bank issues its first public warning against dealing in cryptocurrency.
Circular No. 17 prohibits banks and financial institutions from facilitating crypto transactions.
Authorities apply the foreign exchange law of 1947 and the money laundering prevention act to the activity itself.
Peer-to-peer trading keeps growing, and the state warns that facilitating crypto remittances risks revocation and prosecution.
No tax framework for digital assets has appeared, and officials have signalled no reconsideration.
Worth knowing
Despite the ban the country ranks 13th in the world for grassroots crypto adoption: freelancers take payment from foreign clients in stablecoins because it is faster and cheaper.
Common questions
Is crypto legal in Bangladesh?
No. Banks may not facilitate crypto transactions under a 2017 circular, and the authorities apply the foreign exchange law and the money laundering prevention act to the activity.
What tax will I pay?
None exists. Bangladesh has introduced no tax framework for digital assets, so any rate you see quoted describes rules that were never written.
Can I use a bank?
No. The 2017 circular bars banks and financial institutions from facilitating cryptocurrency transactions.
Why do so many people trade anyway?
Bangladesh receives large remittance flows and formal transfers are slow and costly, which has pushed activity into peer-to-peer channels and foreign platforms.
Is the position likely to change?
Officials have given no indication of reconsidering, and no framework has been proposed.
Sources
Other countries
Updated 21.08.2026 · this is reference material, not investment or tax advice