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Central bank issues notice banning Bitcoin in Bangladesh

  • Published at 05:55 pm December 27th, 2017
  • Last updated at 07:54 pm December 27th, 2017
Central bank issues notice banning Bitcoin in Bangladesh
Bangladesh Bank has banned the use of Bitcoin, a virtual cryptocurrency, in Bangladesh by issuing a circular on its website. The circular read that Bitcoin is not an authorised and legal currency in any other country in the world. “Transaction with this currency may cause a violation of the existing money laundering and terrorist financing regulations,” the circular further read. However, the notice does not carry any indication on how the regulation would be enforced. The circular also said Bitcoin is not authorised by any regulatory authority and thereby its use may cause financial loss of the citizens. “According to the information received from the internet and different news media, transactions have been taking place using different online-based exchange platforms including Bitcoin, Ethereum, Ripple and Litecoin.” These virtual currencies are not authorised by any legal authority of any country and thereby no financial claims can be made against such currencies. Besides, these currencies do not conform to Foreign Exchange Regulation Act, 1947, Anti Terrorism Act 2009 and Money Laundering Prevention Act, 2012, the notice also read. So, the transaction of virtual currencies online with any unnamed or pseudo named peer may cause a violation of the above-mentioned acts and lead clients to face various financial and legal risks. Under the circumstances, the citizens have been asked to refrain from performing, assisting and advertising all kind of transactions through the virtual currencies like Bitcoin to avoid financial and legal damages. Meanwhile, a Facebook page titled “Bitcoin Exchange: Bitcoin Buy and Sell Bangladesh” has been opened in recent times. A local website named bitcoin.com claims that Bitcoin transaction can be performed in Bangladesh through Bkash, Rocket and other general banking accounts.   Bitcoin is gradually gaining popularity across the world. As a result, central banks of many countries have taken measures to adopt separate policies for Bitcoin. Bangladesh Bank Deputy Governor SK Sur Chowdhury, in a recent seminar, said: “A committee will be formed by next June, by coordinating with various public and private agencies. The committee will work to find out a way on how to introduce Bitcoin in Bangladesh. Bitcoins can be used for online purchase like other normal currencies. But governments and central banks work through the general currency system. A person or a group of software developers named Satoshi Nakamoto launched the cryptocurrency in 2009. The Bitcoin transaction can be performed directly (peer-to-peer) between two users. A method named “cryptography” is used to ensure the security of the transactions. Such transaction can be performed without revealing the identity of the user. The primary reason behind its popularity lies in the concept that investing in Bitcoin would generate a huge profit.