• Friday, Sep 24, 2021
  • Last Update : 01:28 am

Bangladesh Bank to CID: Trading, owning cryptocurrency not illegal

  • Published at 07:50 pm July 27th, 2021
bitcoin-cryptocurrency
Representational image of Bitcoin Bigstock

Cryptocurrency transactions or trade should be deemed as crimes if they involve money laundering or terror financing, the central bank says

Owning cryptocurrencies or carrying out virtual transactions and trade through them is not a criminal offence, the Bangladesh Bank recently said in a letter to the Criminal Investigation Department (CID).

The Foreign Monetary Policy Division of the central bank wrote in the letter that cryptocurrency transactions or trade should be deemed as crimes if they involve money laundering or terror financing, a CID source has confirmed.

Even if the ownership, preservation, or transaction of cryptocurrency is not recognized, it does not appear to be a crime, reads the letter sent in May.


Also Read - RAB arrests 4 for Bitcoin trading


However, transactions in virtual currencies can be listed as crimes under the second phase of the Foreign Exchange Control Act 1947, Anti-Terrorism Act 2009, and the Prevention of Money Laundering Act 2012, the letter adds. 

Speaking to Dhaka Tribune about the matter, Syed Almas Kabir, president of the Bangladesh Association of Software and Information Services (BASIS), said: “Cryptocurrency is the future. When we want to move towards a cashless society, we cannot be in denial. We have to start preparing to adapt to the implementation of such technology that has the potential to develop several industries.”

He also said skilled human resources need to be developed for reaping the benefits of blockchain technology, as well as a local evaluation of the currency against the Taka. 

There is also a big opportunity for Bangladeshi fintech and software industries if the stance of the legality of cryptocurrencies is made clear and policies are implemented, said a top official of a non-bank financial institution (NBFIs) that has been developing such blockchain-based technology for its clients.

Although several financial institutions such as NBFIs have been actively trying to develop blockchain-based services, the local acceptance of cryptocurrency has been almost non-existent so far.

Bangladesh is one of the few countries in the world that consider bitcoin and all other types of cryptocurrencies as "hostile". 


Also Read - Bangladesh lags behind in fintech ecosystem globally


Earlier, the central bank issued a warning in December 2016 on their website asking people to refrain from trading in artificial currencies. 

“Transactions in virtual currency may violate anti-money laundering and anti-terrorism financing laws," said the statement.

However, highlighting the importance of the technology, the Bangladesh Bank has taken this new stance stating the value of the current virtual currency market in the world which stands at two trillion US dollars. 

But Bangladesh has yet to formulate any policy to regulate the industry.

147
Facebook 111
blogger sharing button blogger
buffer sharing button buffer
diaspora sharing button diaspora
digg sharing button digg
douban sharing button douban
email sharing button email
evernote sharing button evernote
flipboard sharing button flipboard
pocket sharing button getpocket
github sharing button github
gmail sharing button gmail
googlebookmarks sharing button googlebookmarks
hackernews sharing button hackernews
instapaper sharing button instapaper
line sharing button line
linkedin sharing button linkedin
livejournal sharing button livejournal
mailru sharing button mailru
medium sharing button medium
meneame sharing button meneame
messenger sharing button messenger
odnoklassniki sharing button odnoklassniki
pinterest sharing button pinterest
print sharing button print
qzone sharing button qzone
reddit sharing button reddit
refind sharing button refind
renren sharing button renren
skype sharing button skype
snapchat sharing button snapchat
surfingbird sharing button surfingbird
telegram sharing button telegram
tumblr sharing button tumblr
twitter sharing button twitter
vk sharing button vk
wechat sharing button wechat
weibo sharing button weibo
whatsapp sharing button whatsapp
wordpress sharing button wordpress
xing sharing button xing
yahoomail sharing button yahoomail