Crypto Legal Status in Bangladesh: What You Can and Can't Do

When it comes to crypto legal status in Bangladesh, the official stance is clear: cryptocurrency is not recognized as legal tender and its use is heavily restricted under central bank policy. Also known as Bangladesh crypto regulations, this rule applies to trading, exchanging, and even holding digital assets like Bitcoin or Ethereum without formal approval. The Bangladesh Bank issued a formal circular in 2017 banning all cryptocurrency transactions, and it hasn’t changed since. Banks and financial institutions are prohibited from facilitating any crypto-related activity, and violating this rule can lead to criminal charges under the Money Laundering Prevention Act.

This isn’t just about policy—it’s about real consequences. People who try to use Binance, Coinbase, or local P2P platforms to buy crypto risk having their bank accounts frozen. Even sending money overseas to fund a crypto purchase can trigger investigations. While some users still trade through informal channels or use foreign exchanges with VPNs, there’s no legal protection if something goes wrong. No courts in Bangladesh will enforce a crypto contract, and no regulator will help you recover stolen funds. That’s why many locals treat crypto like a gray-area gamble, not an investment.

The government hasn’t banned blockchain technology itself—just the use of tokens as currency. That’s why you’ll still see startups in Dhaka working on supply chain tracking or digital identity projects using blockchain, as long as they don’t involve crypto tokens. But if you’re thinking about buying, selling, or mining crypto, you’re stepping into a legal gray zone with no safety net. There’s no licensing system, no consumer protection, and no official guidance on tax reporting. Even if you earn profits from crypto trades, the Income Tax Department doesn’t recognize them as taxable income—but that doesn’t mean you’re safe from prosecution.

Compare this to countries like Nigeria or India, where crypto is regulated, taxed, and monitored. In Bangladesh, the lack of clarity doesn’t mean freedom—it means risk. If you’re a trader, a remittance sender, or someone trying to protect savings from inflation, you’re left with few legal options. Some people turn to gold or foreign currency instead. Others take the chance anyway, knowing the penalties could be severe. The truth? There’s no official path to legally use crypto in Bangladesh today. The rules haven’t evolved with the tech, and until they do, any activity is technically illegal.

Below, you’ll find real cases, scam warnings, and breakdowns of platforms that claim to work in Bangladesh—most of which don’t. Some posts expose fake airdrops targeting locals. Others warn about exchanges that vanish after collecting deposits. This isn’t about hype. It’s about survival in a system that doesn’t recognize your digital assets. Know the rules before you act.