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Bangladesh Bank has maintained its ban on cryptocurrency and virtual currency transactions, including trading, buying, selling, exchange and transfer, warning that no individual or institution may facilitate such activities.
Under the central bank’s existing directives, banks and financial institutions have been instructed to remain vigilant and strengthen monitoring to prevent cryptocurrency transactions through customers’ accounts. The instructions will remain effective for one year from the date of issuance of the circular.
Bangladesh Bank issued a circular on the matter on Thursday (October 29).
The latest directive incorporates restrictions on virtual assets and virtual currency exchange, transfer and transactions into its consolidated policy framework for foreign exchange management and operations.
The framework also covers foreign exchange rates and reporting, transactions between authorised dealer (AD) banks and Bangladesh Bank, payments and settlements under the Asian Clearing Union (ACU), foreign currency accounts, banks’ open position limits, nostro account reconciliation, forward transactions, swaps and hedging risks related to commodity prices in import trade.
In a circular issued on September 15, 2022, the central bank’s Foreign Exchange Policy Department stated that transactions involving the acquisition of virtual assets for the purpose of buying or selling them from, to or within Bangladesh were not permitted.
On October 12, 2022, it instructed banks to step up monitoring and take measures to prevent such transactions.
According to Bangladesh Bank, virtual currencies are not recognised as legal tender under the Foreign Exchange Regulation Act, 1947. They are not backed by any sovereign state, making their values highly volatile and exposing investors to the risk of financial losses.
Despite the restrictions, cryptocurrency use in Bangladesh is reportedly growing, driven by online-based transactions.
In its The 2026 Geography of Crypto Report, blockchain analytics firm Chainalysis analysed data from 117 countries to assess global cryptocurrency adoption trends.
Bangladesh ranked 56th globally in grassroots cryptocurrency adoption this year, according to the report. Neighbouring India ranked sixth, Pakistan 25th and Sri Lanka 82nd.
The findings highlight the continued spread of cryptocurrency use even in countries where regulatory restrictions remain in place.