Risk of Crypto Trading for Bangladesh Citizens in 2025

Buying Bitcoin or trading USDT in Bangladesh isn’t just risky-it’s illegal. And yet, thousands of people still do it every day. Why? Because the money’s there, the banks won’t help, and the underground network is easier than you think. But what happens when the police knock on your door? Or your agent disappears with your life savings? Or your bank freezes your account because they found a $5,000 transfer to a foreign exchange? This isn’t speculation. It’s happening right now.

It’s Not Just Against the Rules-It’s a Crime

The Bangladesh Bank banned all cryptocurrency activity in 2017. That means buying, selling, holding, mining, or even receiving crypto as payment is illegal under national law. The government doesn’t just discourage it-they prosecute. People have been arrested under the Money Laundering Prevention Act for using crypto wallets. Fines can reach millions of taka. Jail time is possible. And unlike traffic tickets, there’s no appeal process built into the system. If you’re caught, you’re treated like a financial criminal.

Here’s the twist: the ban hasn’t stopped trading. It’s made it more dangerous. Major platforms like Binance and KuCoin are still downloadable from the Google Play Store in Bangladesh. You can open an account in minutes with just an email and phone number. No ID check. No verification. But that doesn’t mean you’re safe. The bank doesn’t need to block the app to catch you. They track bank transfers. They monitor foreign currency flows. And if your account suddenly sends $10,000 to a crypto exchange, you’re on their radar.

The Underground Agent System: High Reward, Zero Protection

Most Bangladeshis who trade crypto don’t use apps directly. They use local agents. These are people-often shopkeepers, students, or small business owners-who buy and sell Bitcoin or USDT in cash for Bangladeshi Taka. You walk into a shop, hand over 100,000 taka, and get 1.2 BTC. Or you send money to their account, and they send crypto to your wallet. Simple. Fast. No paperwork.

But here’s the catch: these agents aren’t regulated. They aren’t licensed. There’s no contract. No receipt. No recourse. If they disappear with your money, you have no legal option. No police report will help. No court will hear your case because the transaction itself is illegal. And the margins are brutal. Agents make 5-15% profit on every trade just by playing the buy-sell spread. That means if you buy $1,000 worth of USDT, you might only get $900 worth of actual value because of hidden fees.

Scams are rampant. Fake agents. Fake wallets. Fake transactions. In 2024, over 120 reported cases of crypto fraud involving local agents surfaced in Dhaka and Chittagong alone. Most victims never recovered a penny.

Biometric Crackdowns Are Forcing People Into Darker Corners

In early 2025, the government rolled out new rules requiring biometric verification for anyone using local digital payment platforms. This was meant to stop money laundering. But it backfired. Overnight, 30% of crypto users abandoned regulated local exchanges because the verification process took three days, required government ID, and left a paper trail. So where did they go? Telegram.

Telegram groups are now the primary marketplace for crypto in Bangladesh. Thousands of private channels operate under aliases. Traders post offers: “Sell 5 BTC for 7.5M BDT.” “Buy USDT at 112 taka.” No ID needed. No KYC. No trace. But these groups are also where scams thrive. Fake screenshots. Fake deposits. Fake wallets. One group in Sylhet had over 8,000 members before the admin vanished with $2 million in crypto. No one was arrested. No one was even identified.

Taxes on Illegal Activity? The Paradox

The National Board of Revenue doesn’t have a crypto tax law. But they don’t need one. They use the 1984 Income Tax Ordinance, which says: if you earn money, you pay tax. That includes crypto gains. So if you bought Bitcoin at 4 million taka and sold it for 8 million, you owe tax on the 4 million profit. But here’s the trap: you’re legally required to report income from an illegal activity.

Reporting means admitting you broke the law. Not reporting means you’re committing tax evasion. Either way, you’re in trouble. The government doesn’t care if your income came from crypto, gambling, or smuggling. If you earned it, they want their cut. And with digital transaction tracking getting smarter, they’re getting better at finding unreported crypto profits. One trader in Rajshahi was audited in 2024 after his bank flagged a $15,000 deposit. He had to pay 40% in taxes-and then faced a criminal investigation for violating the crypto ban.

Bank Accounts Are on the Line

Financial institutions in Bangladesh are forbidden from dealing with crypto in any way. But that doesn’t mean they can’t detect it. If your account shows frequent transfers to known crypto exchange wallets-like Binance, Bybit, or OKX-your bank may freeze your account. Not because you broke banking rules, but because you broke national law. And once your account is frozen, it’s nearly impossible to unfreeze it without a court order. And courts won’t help you if your case involves illegal activity.

People have lost access to their salaries, their business accounts, even their children’s education funds because of one crypto trade. A shop owner in Khulna used his business account to pay a crypto agent. Six months later, his entire account was locked. He couldn’t pay his suppliers. His business collapsed. He still owes 2.5 million taka in debt.

Why This Is Worse Than in India or Pakistan

Compare Bangladesh to its neighbors. India taxes crypto at 30% and takes 1% at source. Pakistan lets citizens buy Bitcoin through licensed exchanges and even holds Bitcoin as a national reserve. Neither country bans it. Both have rules, oversight, and legal recourse.

Bangladesh has none of that. There’s no legal exchange. No consumer protection. No dispute resolution. No government-backed wallet. Just a ban and a bunch of people trying to outsmart it. That’s not innovation. It’s desperation. And desperation makes people vulnerable.

Security Risks Are Higher Than You Think

Without regulated platforms, you’re forced to use insecure methods. You might store your crypto on a phone with no password. You might use a public Wi-Fi network to send a transaction. You might download a fake wallet app from a Telegram link. All of these are common. And all of them are dangerous.

In 2024, a student in Sylhet lost $8,000 after downloading a “trusted” crypto app from a Telegram group. The app looked real. It had the same logo as Binance. But it was malware. It drained his wallet and sent his private keys to a hacker in Nigeria. He reported it to the police. They told him to file a report on his own illegal activity. He didn’t.

What Happens If You Get Caught?

There’s no standard punishment. Some people get fined. Others get jailed. Some disappear from the system entirely. It depends on how much money was involved, whether you used your real name, and whether the bank flagged you. But the outcome is always the same: you lose control.

One trader in Chittagong was arrested in 2023 after using his father’s bank account to send $50,000 to a crypto exchange. He spent six months in jail before being released on bail. His father’s account was permanently closed. His name was added to a national financial blacklist. He can’t get a loan. He can’t open a new bank account. He can’t even travel abroad without being questioned.

There’s No Way Out-Unless You Stop

The government isn’t backing down. The 2025 framework added new surveillance tools. Banks are required to report suspicious transfers. Telecom companies are scanning for crypto-related keywords in messages. Police are training in blockchain forensics. The underground economy is growing, but so is the crackdown.

If you’re trading crypto in Bangladesh, you’re not just risking money. You’re risking your freedom, your bank account, your reputation, and your future. There’s no safety net. No insurance. No legal backup. The only way to avoid these risks isn’t to trade smarter. It’s not to use a VPN. It’s not to find a better agent.

It’s to not trade at all.