5 years ago

Bangladesh Bank issues Bitcoin cautionary notice

A representational photo
A representational photo

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The central bank has issued a cautionary notification over the transactions of virtual currencies like Bitcoin in the country.

Saying that there is no legal framework of the crypto currencies like Bitcoin, Ethereum, Ripple or Litecoin in any country across the world, the notice has requested all concerned to abstain from transacting such online-based currency or crypto currency.

On Wednesday, Bangladesh Bank (BB) called for caution and restraint while dealing with Bitcoin-like virtual crypto-currencies by publishing the notification on its website.

The notice read, "Virtual currency is not legal in any country. So no one can have financial claim to any authority against the transactions through the currency."

The BB said such currencies are not authorised or supported as per the prevailing Foreign Currency Regulations Act-1947, Anti-Terrorism Act-2009 and the Money Laundering Prevention Act-2012.

Transaction with such currency, hence, may be tantamount to unintentional violation of the existing money laundering prevention act or terror financing regulations, the notification further read.

It said virtual currency transactions take place through online-based network, which is not approved by any central authority or by the payment system that authority allows.

Therefore, it added, the clients may be affected.

The BB circulated the notification drawing people’s attention following recent reports, news items and virtual updates in this regard and thereby asked people not to engage in any financial activities with these virtual currencies in the country.

The notice, however, did not mention any indication as to how the regulation would be enforced.

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