Is crypto legal in Bangladesh? Rules & regulation (2026)

Legal framework

No dedicated crypto statute. Use/trading is prohibited by Bangladesh Bank under the Foreign Exchange Regulation Act 1947 (FER Act), the Money Laundering Prevention Act 2012, and the Anti-Terrorism Act 2009, communicated through central-bank public notices. A nascent regulatory perimeter is set out in the National Blockchain Policy of Bangladesh 2026 (ICT Division), which assigns Virtual Asset Service Provider (VASP) oversight to Bangladesh Bank's AML/CFT framework and tokenised-securities oversight to the Bangladesh Securities and Exchange Commission (BSEC).

Status by sub-area

• Stablecoins

  None

  There is no issuance, reserve, redemption or attestation regime for stablecoins. They are not authorised; the 2026 National Blockchain Policy groups stablecoins with high-risk private crypto assets, and using USD-pegged tokens for FX/remittance settlement is impermissible under the FER Act 1947.

• Exchanges / VASP

  Proposed

  Operating or facilitating a crypto exchange/VASP is currently prohibited and there is no live licensing regime. The 2026 National Blockchain Policy designates VASPs (exchange, transfer, custody, issuance) as a regulatory perimeter under Bangladesh Bank's AML/CFT framework, but no licensing, capital or conduct rules are yet operational.

  Still pending: VASP licensing, capital, conduct rules not yet operational (Bangladesh Bank)

• Token Offerings

  Proposed

  There is no dedicated regime for ICOs/STOs and public crypto token sales are not permitted. The 2026 policy places tokenised securities, security token offerings and blockchain-based capital-market instruments under BSEC jurisdiction via the Securities and Exchange Ordinance 1969, but no token-offering disclosure/prospectus rules are yet in force.

  Still pending: Token-offering disclosure/prospectus rules under BSEC not yet in force

• Custody

  None

  There are no rules on segregation, qualified custodians, safeguarding, proof of reserves or insurance for client crypto, because regulated custody activity does not legally exist. Custody is named within the VASP perimeter the 2026 policy assigns to Bangladesh Bank, but no operational safeguarding standards have been issued.

  Still pending: Custody safeguarding standards not yet operational

• DeFi

  None

  There is no operational DeFi-specific framework. The baseline prohibition on virtual-currency transactions applies; the 2026 policy indicates that DeFi protocols offering securities-like products would fall under BSEC jurisdiction, but there is no defined DAO treatment or enforcement framework for permissionless DeFi.

  Still pending: DeFi/DAO-specific framework and enforcement rules not yet defined

• Tax

  Unclear

  There is no crypto-specific tax regime confirmed in primary sources. Because Bangladesh's income-tax law requires declaring all income regardless of source, gains from disposing of crypto would in principle be taxable, but the National Board of Revenue has not published dedicated crypto guidance and the prohibition on the underlying activity creates ambiguity. Specific rates reported by secondary sources are not verifiable against an official NBR notice.

  Still pending: NBR crypto-tax guidance and rates (ambiguity due to activity prohibition)

Key points: crypto & digital assets in Bangladesh

1. 01Transactions prohibited under FX law

   Bangladesh Bank states virtual currencies are not recognised 'currency' or approved foreign exchange under the FER Act 1947, so transactions in/from/to Bangladesh to obtain virtual assets, and any facilitation of their exchange/transfer/trading, are not permitted.

   bb.org.bd

2. 02Not just trading, promotion also illegal

   Bangladesh Bank has reiterated that not only transactions but also the promotion of cryptocurrency is illegal, warning of violations of the Money Laundering Prevention Act 2012 and the Anti-Terrorism Act 2009.

   tbsnews.net

3. 03No legal-tender status, no exceptions for remittance

   Crypto cannot be used to settle foreign-exchange transactions or remittances; the central bank has signalled crypto has no place in the remittance ecosystem and there are no carve-outs for personal use.

   dhakatribune.com bb.org.bd

4. 04National Blockchain Policy 2026 sets a perimeter

   The ICT Division's 2026 policy assigns VASP activity (exchange, transfer, custody, issuance) to Bangladesh Bank's AML/CFT framework and tokenised securities/STOs to BSEC under the Securities and Exchange Ordinance 1969, but does not authorise private crypto trading.

   objectstorage.ap-dcc-gazipur-1.oraclecloud15.com

5. 05Blockchain encouraged, crypto separated

   Bangladesh has pursued permissioned/sovereign blockchain use (building on the 2020 National Blockchain Strategy) for non-financial and trade applications while keeping a prohibitive stance on private cryptocurrencies and stablecoins.

   bcc.portal.gov.bd objectstorage.ap-dcc-gazipur-1.oraclecloud15.com

6. 06No statute criminalising mere ownership

   The prohibition operates through foreign-exchange and AML law and central-bank notices rather than a dedicated crypto-ban statute; private possession sits in a legal grey area while any transacting/facilitation is treated as unlawful.

   bb.org.bd

Timeline of decisions

1. 1 Oct 2024Incident
   Chainalysis 2024 Global Crypto Adoption Index: Bangladesh Ranks 35th Despite Total Ban

   Chainalysis ranked Bangladesh 35th out of 151 countries in crypto adoption, estimating approximately 3.1 million wallet holders using P2P platforms and VPNs to circumvent restrictions, down from a peak of 17th in the 2023 index but still illustrating a stark gap between prohibition and practice.

   Chainalysis

2. 1 Oct 2024Enforcement
   BFIU Blocks 2,800+ Mobile Accounts; 127 Suspicious Crypto Transactions Flagged in Q4 2024

   The Bangladesh Financial Intelligence Unit reported 127 suspicious crypto-linked transactions in Q4 2024 alone and blocked over 2,800 bKash and Nagad mobile-wallet accounts for suspected crypto activity, the most aggressive enforcement wave to date and evidence of a shift from warning-based to active interdiction.

   Disruption Banking

3. 1 Feb 2023Enforcement
   CID Seizes 127 Bitcoin (~USD 12 Million) from Trader Mohammad Ali

   Bangladesh's Criminal Investigation Department executed one of the country's largest crypto seizures, confiscating 127 Bitcoin from a trader named Mohammad Ali under the Money Laundering Prevention Act 2012; Bangladesh Bank had previously advised the CID that owning crypto is not itself an offence but using it for money laundering or foreign-currency violations must be prosecuted.

   The Business Standard (Bangladesh)

4. 15 Sept 2022Guidance · official
   Bangladesh Bank FE Circular No. 24: Comprehensive Prohibition on Virtual Assets

   The Foreign Exchange Policy Department issued a binding circular prohibiting all individuals, entities, and institutions in Bangladesh from dealing in, or facilitating the exchange, transfer, or trading of, virtual assets or virtual currencies, the most legally comprehensive instrument to date, explicitly grounding the ban in the Foreign Exchange Regulation Act 1947 and noting that virtual currencies carry no sovereign backing or legal-tender status.

   Bangladesh Bank

5. 29 Jul 2021Guidance
   Bangladesh Bank Public Notice on Risks of Virtual Currencies

   Bangladesh Bank issued formal public notice DCP(PR)1/2021-7/5 reiterating that virtual currencies are not recognised as 'currency' under the FER Act 1947, are not approved instruments of transaction or investment, and that any transaction in/from/to Bangladesh for obtaining virtual assets is not permitted, setting the stage for the stronger FE Circular issued in 2022.

   Bangladesh Sangbad Sangstha (BSS — state news agency)

6. 1 Oct 2020Guidance · official
   Bangladesh Computer Council / ICT Division Releases National Blockchain Strategy

   The government's ICT Division published Bangladesh's first National Blockchain Strategy, endorsing permissioned blockchain for e-governance, land records, health, agriculture, and finance, explicitly separating beneficial blockchain technology from cryptocurrency, which remained banned; the strategy signalled a technology-positive but crypto-restrictive national posture.

   Bangladesh Computer Council (BCC) / ICT Division

7. 24 Dec 2017Guidance · official
   Bangladesh Bank Cautionary Notice: Bitcoin, Ethereum, Ripple, and Litecoin Named as Prohibited

   Bangladesh Bank published a formal Cautionary Notice on its website naming Bitcoin, Ethereum, Ripple, and Litecoin by name, warning the public to refrain from all transactions in virtual currencies; it added the Anti-Terrorism Act 2009 to the list of laws potentially violated, making this the most explicit and widely reported crypto prohibition notice in Bangladesh's history.

   Bangladesh Bank

8. 1 Jan 2014Guidance
   Bangladesh Bank Issues First Warning Against Bitcoin

   Bangladesh Bank issued its first alert cautioning the public against Bitcoin transactions, citing the Foreign Exchange Regulation Act 1947 and the Money Laundering Prevention Act 2012; it was one of the earliest central bank actions against cryptocurrency globally and established the statutory framework all subsequent notices would invoke.

   The Daily Star

9. 1 Jan 2012Law · official
   Money Laundering Prevention Act 2012 Enacted, Becomes Core Crypto Enforcement Statute

   Bangladesh enacted the Money Laundering Prevention Act 2012, which established the Bangladesh Financial Intelligence Unit (BFIU) and created the statutory authority that regulators invoke alongside the Foreign Exchange Regulation Act to prosecute crypto-related transactions; it criminalises proceeds of predicate offences and authorises asset seizure.

   Ministry of Law, Justice and Parliamentary Affairs (Bangladesh)

10. 1 Jan 1947Law · official
    Foreign Exchange Regulation Act 1947, Foundational Legal Barrier to Crypto

    The Foreign Exchange Regulation Act 1947 (inherited at independence and adapted) defines 'currency' in a way that excludes virtual assets; every Bangladesh Bank notice and FEPD circular restricting cryptocurrency has cited this Act as the primary authority, making it the structural foundation of Bangladesh's prohibition regime.

    Ministry of Law, Justice and Parliamentary Affairs (Bangladesh)

Sources

1. 1.bb.org.bd/mediaroom/circulars/fepd/sep152022fepd24e.pdf
2. 2.objectstorage.ap-dcc-gazipur-1.oraclecloud15.com/n/axvjbnqprylg/b/V2Ministry/o/office-ictd/2026/0/cf2427a1-8b05-4d77-9
3. 3.bcc.portal.gov.bd/sites/default/files/files/bcc.portal.gov.bd/page/bdb0a706_e674_4a40_a
4. 4.sec.gov.bd/
5. 5.tbsnews.net/economy/not-only-transactions-promotion-cryptocurrency-also-illegal-b
6. 6.dhakatribune.com/bangladesh/dhaka/402188/young-bangladeshis-turn-to-cryptocurrency-des