Dhaka: Ownership, keeping or transaction of virtual currency ‘cryptocurrency' has been declared illegal by Bangladesh Bank. Therefore, to avoid financial and legal risks, the central bank has warned against providing transactions or assistance in virtual currencies including bitcoin, and refraining from promoting it.
This information was given in a notification of Bangladesh Bank on Thursday (July 29). It is known that ‘cryptocurrency' is a type of currency that is traded through the internet.
At present, there are more than eight thousand such coins. However, the most popular of these is Bitcoin. In addition, Ethereum, Ripple, Litcoin are being used more.
In a statement on cryptocurrency, the central bank said, “Bangladesh Bank has recently come across a report on virtual currency cryptocurrency published in several media outlets. For the confidential use of the investigating officer of a particular case, part of the opinion sent in a letter from Bangladesh Bank has been fragmented in some media which is by no means generally public. ‘
The central bank says, ‘Recently, various news outlets and the internet have reported that online-based virtual currencies (Bitcoin, Ethereum, Ripple, Litcoin) are being exchanged.
These virtual currencies are not legal tender issued by the legitimate authorities of any country. So no financial claim is accepted. Transactions in these currencies are not approved by Bangladesh Bank or any other regulatory body. These transactions in virtual currency with an unnamed or pseudonymous counterpart online may be in violation of anti-money laundering and anti-terrorism financing laws.
‘Customers may face a variety of risks, including the potential financial and legal risks of virtual currency, as they are not recognized by any legitimate entity.
In this situation, the central bank is warning to refrain from trading in virtual currencies like Bitcoin to avoid financial and legal risks.
“No virtual currency or cryptocurrency is approved by Bangladesh Bank,” the statement said. In order to avoid potential financial and legal risks, the central bank is again instructing all individuals and entities to refrain from conducting transactions in any form of cryptocurrency or virtual currency (such as Bitcoin, Ethereum, Ripple, etc.) or to assist in such activities.