Is Bitcoin legal in Bangladesh? The legal status of crypto in 2026
Bangladesh Bank does not permit cryptocurrency transactions, and a 2022 circular bars banks and mobile financial services such as bKash and Nagad from them. A plain explanation with the timeline, the legal basis and sources.
Last reviewed: 14 October 2026
In brief
- Transactions are not permitted: Bangladesh Bank does not permit transactions in Bitcoin or any other virtual currency or asset.
- Banks and mobile financial services are barred: under the 2022 circular, banks, financial institutions and mobile financial services such as bKash and Nagad must not be used to buy, sell, exchange or transfer virtual assets. Facilitating such businesses is also prohibited.
- Not legal tender: cryptocurrency is not a recognised currency in Bangladesh.
- No approved exchanges: no crypto exchange or virtual asset service provider is approved in the country.
- Holding is a grey area: no law separately makes merely holding crypto an offence, and sources describe the question as ambiguous. In practice, though, you cannot get or use crypto without buying, selling or transferring it.
The laws involved
Bangladesh Bank's notices have mainly cited three laws:
| Law | Why it is relevant |
|---|---|
| Foreign Exchange Regulation Act, 1947 | Virtual currencies are not recognised "currency"; trading on foreign platforms can breach foreign exchange rules |
| Money Laundering Prevention Act, 2012 | Anonymous, borderless transfers create money-laundering risk |
| Anti-Terrorism Act, 2009 | Risk of terrorist financing |
What this means for ordinary people
- Transactions carry legal risk. Buying or selling crypto through a bank or mobile account in particular can get the account flagged or frozen.
- Little protection if you are cheated. Because the transaction itself was not permitted, recovering money or getting a legal remedy is hard.
- "Approved in Bangladesh" claims are false. A platform saying this is showing a sign of fraud.
- No crypto for remittances. Send money home through legal banking channels; crypto and informal channels risk both breaking the law and being defrauded.
Blockchain technology is a separate matter
Cryptocurrency and blockchain technology are not the same thing. The government is developing policy for using blockchain technology outside crypto. The 2026 draft National Blockchain Policy says explicitly that crypto trading, virtual currency exchanges and the legal status of cryptocurrencies remain under Bangladesh Bank's authority. See what a blockchain is.
About this page
This page is based on published news reports, reports of Bangladesh Bank's notices and government documents, with sources given for each event in the timeline below. We could not find the original 2014 notice, so it is listed as "reported". The page will be updated when the rules change or new information emerges.
Further reading: the risks of crypto in Bangladesh, how to spot crypto scams.
Timeline
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2014
First caution (reported)
Legal commentary says Bangladesh Bank issued its first caution against using Bitcoin in 2014. We have not been able to verify the original notice.
Sources: Mahbub & Company
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24 December 2017
Warning to refrain from virtual currency trading
Bangladesh Bank published a warning in the media and on its website telling the public to refrain from trading virtual currencies including Bitcoin, Ethereum, Ripple and Litecoin, citing the foreign exchange, money-laundering and anti-terrorism laws.
Sources: The Daily Star (2021, referring to the 2017 notice)
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29 July 2021
"Crypto trading not allowed": Bangladesh Bank clarifies
After parts of a letter to the CID were published and caused confusion, Bangladesh Bank stated that holding or trading any kind of virtual coin or cryptocurrency is not permitted and urged everyone to avoid such transactions.
Sources: The Daily Star
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15 September 2022
Circular bars banks and mobile financial services
A Bangladesh Bank foreign exchange policy circular (FE Circular No. 24) told individuals and institutions in the country to refrain from dealing in virtual assets and currencies and from facilitating such businesses. An official said banks, financial institutions and mobile financial services such as bKash and Nagad are prohibited from exchanging, transferring or trading virtual assets.
Sources: The Business Standard, The Financial Express
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October 2022
Banks told to monitor transactions (reported)
Legal reviews report that a circular letter (BRPD Circular Letter No. 40) directed banks to monitor and prevent transactions linked to virtual asset service providers.
Sources: Global Law Experts
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August 2023
MTFE collapses
MTFE, a platform promising regular returns from crypto and dollar "trading", abruptly stopped operating. Large numbers of investors lost money and the CID opened an investigation. See lessons from MTFE.
Sources: Dhaka Tribune
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2026
Draft blockchain policy leaves crypto out
The ICT Division's draft National Blockchain Policy 2026 states that crypto trading, virtual currency exchanges, crypto asset markets and the legal status of cryptocurrencies as currency or legal tender remain exclusively under Bangladesh Bank's jurisdiction.
Sources: ICT Division (draft policy, PDF)