Cryptocurrency Legality in Bangladesh: What You Can and Can't Do in 2025

When it comes to cryptocurrency legality in Bangladesh, the legal status of digital currencies under Bangladeshi law. Also known as crypto regulations in Bangladesh, it's not a simple yes or no—it's a gray zone where the central bank says no, but people still trade anyway. The Bangladesh Bank, the country’s central bank, issued a formal notice in 2017 banning all cryptocurrency transactions. They called it illegal under the Foreign Exchange Regulation Act. That means banks, payment processors, and financial institutions can’t touch crypto. If you try to deposit Bitcoin into your bank account, it gets blocked. If you send money to a crypto exchange, your account might get frozen.

But here’s the twist: people are still trading. Thousands of Bangladeshis use peer-to-peer platforms like LocalBitcoins and Paxful to buy and sell Bitcoin using bank transfers, mobile wallets, or even cash meetups. The government hasn’t shut them down completely—not because they approve, but because enforcement is nearly impossible. Crypto doesn’t need banks to move. It runs on the internet, and the internet is everywhere. Still, if you’re caught facilitating large-scale trading or running an exchange, you could face criminal charges. There have been arrests for operating unlicensed crypto businesses, and fines can be steep.

There’s no official tax system for crypto in Bangladesh, which makes things even murkier. No one is reporting gains or losses to the tax authority. That means you’re not paying tax, but you’re also not protected by law. If you get scammed on a fake exchange like TAGZ or lose funds in a rug pull, there’s no legal recourse. The same goes for any airdrop or token you might come across—like DOGGY or VIKC—that’s promoted to Bangladeshis. No regulation means no safety net.

Compared to countries like India or Ecuador, where rules are confusing but at least somewhat defined, Bangladesh’s stance is a hard wall with cracks. You can slip through, but you’re on your own. The central bank Bangladesh crypto, the official authority controlling financial systems and enforcing crypto restrictions. Also known as Bangladesh Bank, it has shown no signs of changing course. No legal framework for exchanges, no licensing for traders, no recognition of crypto as property. And unlike Switzerland or Portugal, there are no tax exemptions or legal pathways to hold crypto safely.

What you’ll find in the posts below are real stories from people caught in this gray zone. From scams targeting Bangladeshis with fake airdrops, to traders using underground methods to bypass banking blocks, to warnings about platforms that look legit but vanish overnight. This isn’t about investing advice. It’s about survival. If you’re in Bangladesh and you’re using crypto, you need to know the risks—not because the law says so, but because the system doesn’t protect you at all.