Stablecoin issuer / redeemer in Bangladesh

Not classified as e-money/payment tokens/securities: Bangladesh does not officially classify stablecoins under its existing regulatory frameworks for e-money, payment tokens, or securities. Instead, they are generally treated as unauthorized digital assets that do not conform to any established legal or financial instrument categories.

Not applicable: Since stablecoins are not recognized or authorized, there are no prescribed reserve requirements for their issuance or backing in Bangladesh.

Not applicable: No licenses are issued for stablecoin issuers, cryptocurrency exchanges, or any related virtual asset service providers in Bangladesh. Operating such services would be considered illegal.

No legal protection: As stablecoins are not regulated, there are no legal frameworks in place to protect redemption rights for holders. Any engagement with stablecoins or other cryptocurrencies is at the user's sole risk.

In Bangladesh, cross‑border foreign exchange transactions are governed by the Foreign Exchange Regulation Act, 1947 (as amended), which remains in force and is administered by Bangladesh Bank. Bangladesh Bank has stated via circulars that cryptocurrencies/virtual currencies are not legal tender in Bangladesh and has warned against their use, but there is no explicit, publicly available provision in the Act itself or authoritative judicial ruling that categorically deems every cryptocurrency transaction—especially solely by virtue of being a “currency”—to be a violation of the Foreign Exchange Regulation Act, 1947. Rather, potential violations would arise where such transactions fall within regulated foreign exchange or cross‑border payment activities without required Bangladesh Bank permission.

Money Laundering Prevention Act, 2012 (MLPA): The BB has highlighted the significant risks of money laundering and terrorist financing associated with the anonymity and unregulated nature of cryptocurrencies. While not specifically mentioning "virtual assets," engaging in transactions that facilitate money laundering through any means would fall under this act.

FE Circular No. 15 of 2017 (December 24, 2017): This was one of the earliest and most direct prohibitions. The BB warned against dealing in virtual currencies like Bitcoin, stating they are not legal tender, are not approved by the BB, and carrying out transactions with them could lead to violations of FERA and MLPA.

Circular No. 34 (of 2021) on Foreign Exchange Transactions (October 14, 2021): This circular reiterated the ban, explicitly stating that "virtual assets" (including cryptocurrencies like Bitcoin, Ethereum, Ripple, Litecoin) are not legal tender and are not permitted for transaction or exchange within Bangladesh. It also warned about associated risks and legal consequences.

Cryptocurrency Exchanges: Operating an exchange for buying, selling, or trading cryptocurrencies is prohibited.

Custody Providers: Providing custody services for virtual assets is not permitted.

Payment Processors: Engaging in payment processing or facilitating transactions involving cryptocurrencies is prohibited.

Neither a registration nor a licensing regime exists for virtual assets in Bangladesh.

The current approach is one of outright prohibition and warning against engaging in any activities related to cryptocurrencies.

There is no application process for virtual asset licenses in Bangladesh because such licenses are not issued.

Under Bangladesh’s Money Laundering Prevention Act (MLPA), Section 4, individuals convicted of money laundering are subject to a statutory imprisonment range of 4 to 12 years, with the precise term within that range determined by the court based on the nature, severity, and value of the offense.

Asset forfeiture is a legal process in which authorities confiscate property connected to alleged criminal activity, including assets used in, derived from, or otherwise linked to crime, sometimes through in rem proceedings that do not require a criminal conviction and can extend beyond only the assets directly involved in specific illegal transactions.

Money Laundering Prevention Act, 2012 (MLPA): This act provides the framework for combating money laundering. Bangladesh Bank has consistently highlighted that cryptocurrencies pose significant risks for money laundering and terrorist financing due to their anonymity and decentralized nature.

Bangladesh Bank Circulars/Warnings: Bangladesh Bank has issued several circulars and public warnings specifically cautioning against cryptocurrencies. While older circulars might not be easily accessible online in English, their essence is widely reported in financial news. A notable warning was issued in 2017.

Example of reported warning (from news): In December 2017, Bangladesh Bank issued a notice stating that transactions in virtual currencies like Bitcoin are illegal and a punishable offense under the country's existing laws. This warning covered all cryptocurrencies by implication.

No Specific Rates for Crypto: There are no specific capital gains tax rates for cryptocurrency in Bangladesh because it is not recognized as a legal asset for investment.

Hypothetical (Illegal Context): If an individual were to somehow declare "gains" from crypto, the NBR would not treat it as capital gains from a recognized asset. It would likely be treated as undeclared income from an illegal source, subject to general income tax laws at the highest marginal rates, along with penalties, and potentially triggering actions under other laws (e.g., anti-money laundering).

Hypothetical (Illegal Context): Similar to capital gains, any "income" derived from cryptocurrency would be considered income from an illegal source. Tax authorities, if they became aware of such income, would likely pursue it under general income tax rules for undeclared income, potentially with punitive measures, rather than as a regularly taxable source.

Criminal investigations into cryptocurrency-related fraud and illegal remittance schemes are active in Bangladesh, but there is insufficient recent evidence to confirm significant arrests of individuals involved.

The October 2022 case was part of a multi-level marketing crypto scam in Bangladesh, but enforcement actions have continued and expanded beyond that date, including CID repatriation of Tk44 crore laundered through the MTFE scam in 2025.

Example Case 2 (Early 2023): Arrests for "digital hundi" (illegal remittance) using cryptocurrency.