Bangladesh Bank and Central Bank has put a hold on any kind of transactions in cryptocurrency and requested individuals and entities to stop all kinds of dealing in virtual currencies.
Bangladesh has banned any type of transaction, ownership of virtual currency in the country. The Bangladesh Bank has declared cryptocurrency usage as illegal. Hence, to avoid financial and legal risks, the central bank has warned against providing transactions or assistance in virtual currencies including bitcoin. The bank also suggests people refrain from promoting it.
Bangladesh Bank put a notice on Thursday about the step taken against the virtual currency. Cryptocurrency is a type of currency traded via the internet. Currently, there are over 8000 such coins. Among them, bitcoin is the most popular followed by ethereum, ripple, bitcoin, which are being used for transactions.
Investigation against cryptocurrencies
Bangladesh Bank has recently come across a report on virtual currency published in various media outlets. The investigating officer of a particular case working on it, an opinion letter was sent from the Bangladesh Bank. The letter has been fragmented in some media which is by no means generally public.
No legal authority
The Central Bank said that there has been news regarding cryptocurrencies doing the round. Various news outlets and the internet have reported that online-based virtual currencies are being exchanged. These virtual currencies are not legal tender issued by the legitimate authorities of any country. So the financial claim is accepted.
Bangladesh Bank or any other regulatory body have not approved any transactions in cryptocurrencies. These transactions are regarded as a violation of anti-money laundering and anti-terrorism financing as they do not have any name attached to them. The transactions are unnamed or pseudonymous.
Since they are not recognized by any legitimate authority, people transacting in virtual currency may face a variety of risks including potential financial and legal risks. So, Central Bank has warned people to refrain from transacting in virtual currency.
To avoid potential financial and legal risks, the Central Bank again instructed all the people and entities to refrain from conducting transactions in any form of cryptocurrency or virtual currency (like Bitcoin, Ethereum or Ripple etc.) or to assist in such activities.
Cryptocurrencies like Bitcoin, Ethereum are considered a threat by the banking institutions. Where most countries like to maintain control over the financial and banking system, bitcoin does the opposite. Bangladesh had banned bitcoin after the 2014 scandal with a jail term. But it is difficult to implement in countries, unlike other laws which are difficult to implement in the countries.