The ever-evolving space of virtual assets has been gaining momentum in Bangladesh in recent times. With the rising adoption of crypto, it is evident that this different type of technology is rising in popularity among people, companies, and buyers within the nation. There have been multiple reasons which are contributing to the sharp growth in the crypto sector in Bangladesh.
In this article, we will study the ongoing crypto regulations in Bangladesh and their impact on the nation’s crypto stance!
On the 2023 global adoption index, Bangladesh ranked number 17. A number of factors have contributed to the rising acceptance and usage of crypto in Bangladesh. One of the main drivers is the development of know-how and the easy availability of web entry, which has made it easier for individuals to take part in the crypto market. There are many Crypto exchanges and platforms that facilitate the shopping for and promoting of digital currencies in Bangladesh.
Also, cryptocurrencies have additionally attained a vital position in selling monetary inclusion in Bangladesh.
In 2020, the Government of the People’s Republic of Bangladesh published the National Blockchain Strategy. This publication recognized the crucial importance of the advent of technologies such as blockchain. However, Crypto is still illegal in Bangladesh! Financial institutions are not allowed to facilitate Bitcoin transactions.
Bangladesh issued a ban in 2017 warning against the use of Bitcoin and other cryptocurrencies as an offence which could lead to imprisonment.
Despite the expansion and recognition across the world, Bangladesh has yet to accept digital currencies. There are two major reasons behind the government’s decision to not legalize crypto in Bangladesh. Firstly, the volatility of crypto’s value and the lack of anonymity connected with it. Secondly, the Government is afraid that it might create a really bad impact on Bangladesh’s economy.
While a hostile view toward crypto, the government has made crypto illegal according to the Foreign Exchange Regulation Act. The act mentions that anyone associated with crypto in Bangladesh will face serious consequences under the Foreign Exchange Regulation Act, of 1947, Anti-Terrorism Act, of 2009, and the Money Laundering Prevention Act, of 2012.
Due to the ban on cryptocurrency in Bangladesh, there is no tax regime in place here for cryptocurrency. We might expect some channelised crypto framework in the near future.
As we have read the government in Bangladesh doesn’t have a very favourable stance in Bangladesh. Here is how crypto entities are treated in Bangladesh:
| Bitcoin | Illegal |
| NFTs | Illegal |
| Trading | Illegal |
| DeFi | Illegal |
| Mining | Illegal |
We all are aware of the growing trajectory and global adoption of digital currencies. There might come a time in future when the government has no other option than to legalize crypto in Bangladesh. The government needs to be prepared with effective plans to ensure that it doesn’t hamper the economy of the nation and not hinder citizens with ineffective laws.
Bangladesh has citizens with a great deal of interest in crypto, hence we hope for a strong regulatory framework to work with cryptocurrency in future.
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