Bangladesh central bank declares Bitcoin illegal, police begin arresting some traders

Bangladeshi law enforcement is actively catching people using and trading Bitcoin as the cryptocurrency remains illegal in the country.

Cryptocurrency enthusiasts in Europe and North America may have an easier time. Although we have to worry about the exchange rate of trading pairs, often have to consider whether to sell or hold on to our positions, and have to go through the ups and downs of cryptocurrency prices, at least we don’t have to worry about the police suddenly knocking on our door because we are trading cryptocurrencies. This is exactly what Bitcoin users in Bangladesh are experiencing.

Bangladesh central bank issues warning

Bangladesh's central bank has warned other commercial banks to be on the lookout for people using bitcoin, arguing that despite the virtual currency's popularity, its use and trading remain illegal in the country.

A senior central bank official said that in the future the Ministry of the Interior will receive a report on how to deal with cryptocurrencies. At the same time, the use of virtual currencies will be monitored by the Foreign Exchange Police Department and other government agencies.

The Bangladeshi government has warned people not to trade in Bitcoin, and the central bank has said that this virtual currency is not a legal currency in any country in the world. But in fact, Japan has already recognized Bitcoin as a legal transaction method.

Actions by law enforcement

The current law enforcement agency responsible for dealing with Bitcoin is the Bangladesh Financial Intelligence Unit (BFIU). The Foreign Exchange Police Department, BFIU and the Bangladesh Communications Regulatory Commission (BTRC) have held four meetings on how to combat cryptocurrency activities.

A BFIU official pointed out:

Banks and other financial institutions have been instructed to closely monitor cryptocurrency transactions and a specific notification will be issued soon.

There is no legal way to purchase this type of currency through banking channels. The Cyber ​​Crime Investigation Department is following up on this issue.

Speaking of the Cyber ​​Crime Investigation Department, Assistant Deputy Director General Nazmul Islam of the country’s Cyber ​​Crime Department said:

We have identified several Bitcoin users and are in the process of arresting them, and the authenticity of some other websites remains to be investigated. Investigating cryptocurrency transactions is a complex matter.

Although the use of cryptocurrencies is illegal in Bangladesh, it has not dampened its interest in such currencies. While cracking down on cryptocurrency users, the Bangladeshi government is also studying the deployment of its own virtual currency.

Bangladesh Central Bank Advisor said at the Digital World Congress 2017:

Representatives from the central bank and government and non-government financial institutions will form a committee to study how to create and deploy Bangladesh's digital currency.