Is crypto legal in Bangladesh? Regulation & rules (2026)

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.

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.

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 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 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.

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 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 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.

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.

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.