Online-based artificial currency “Bitcoin” is illegal in Bangaldesh, acccording to a notice issued by the central bank of Bangladesh.
Bangladesh Bank (BB), the central bank of Bangladesh, issued the notice on Monday. The announcement comes within a month of the formation of Bitcoin Foundation Bangladesh.
Transaction through Bitcoin or any other artificial currency is not recognised by the central bank or any other agency of the Bangladesh Government, read the BB notice.
The notice said: “Bitcoin's transactions take place through online-based networks, which is not approved by any central authority or by the payment system that controls authority. Therefore, the clients may be affected.”
“These unapproved transaction will be treated as a punishable offence under the foreign exchange regulation act, 1947, and money laundering act, 2012," the notice said.
Under these circumstances, Bangaldesh Bank requested the commoners to abstain from transactions through artificial coins, providing support and forming publicity to avoid possible financial and legal risks.
On August 16, the Bitcoin Foundation announced its first affiliate group in Asia, with Bitcoin Foundation Bangladesh becoming the latest local advocacy group to join its international network.
Payments under Bitcoin system work peer-to-peer without a central repository or administrator. The US Treasury termed Bitcoin a decentralised 'virtual currency'.