Cryptocurrency transactions not legal, says BB

Bangladesh Bank has said transactions of virtual currency, popularly known as cryptocurrency, are not legal.

In a press release issued on Thursday, the central bank said a number of virtual currencies are being traded on different exchange platforms, such as, Bitcoin, Ethereum, Ripple, Litecoin, etc, which were not issued by any specific lawful authorities.

Since these virtual currencies are not legal tenders issued by the legitimate authorities of any country, no financial claim could be made against them, BB said.

As transactions in these currencies are not approved by Bangladesh Bank or any other regulatory body, the use of these virtual currencies could be subject to Foreign Exchange Control Act, 1947, Anti-Terrorism Act, 2009 and the Prevention of Money Laundering Act, 2012, respectively.

The central bank warned that no virtual currency or cryptocurrency has been approved by Bangladesh Bank. All individuals and entities are requested to keep off engaging in any form of cryptocurrency or virtual currency transactions.

It further stated, transactions in virtual currency with an unnamed or anonymous counterparts online may inadvertently violate anti-money laundering and anti-terrorism financing laws.

Since payment and settlement of virtual currency take place mainly through online based networks and since it is not recognised by any central authority or payment system, a person, therefore, may face various risks including potential financial and legal risks.