The globally evolving legal landscape surrounding cryptocurrencies continues to create differences among countries, and Bangladesh is particularly challenging. Bangladesh ranks as a hostile country towards Bitcoin, but is Bitcoin legal in Bangladesh? Bitcoin is illegal as a currency, and financial institutions remain prohibited from processing cryptocurrency payments. However, what about trading with the best Forex brokers in Bangladesh that offer Bitcoin CFDs or with the best crypto brokers? Read my analysis of Bitcoin in Bangladesh and find out how you can trade Bitcoin.
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Is Bitcoin Legal in Bangladesh Now?
Bangladesh published a National Blockchain Strategy in 2020, but is Bitcoin legal in Bangladesh? The answer is complex, and the situation is evolving.
Here is what my Bitcoin in Bangladesh research determined:
- Bitcoin is illegal as a tender
- Using Bitcoin to facilitate payment in Bangladesh for goods and services violates the Foreign Exchange Regulation Act 1947 and the Money Laundering Prevention Act 2012
- Bitcoin may also violate the Anti-Terrorism Act 2009 in Bangladesh
- Financial institutions cannot process Bitcoin transactions
- Owning Bitcoin is illegal in Bangladesh but permitted offshore
- Bitcoin mining is a grey area without clear rules
- Trading Bitcoin, with a crypto broker is legal
Noteworthy:
A law firm in Bangladesh added that the “Bangladesh Bank’s declaration that it is not legal tender finds resonance with the regulatory response in most countries. However, it could be argued that Bitcoin not being accepted or recognized as legal tender does not necessarily make it illegal. The legal basis of a “warning” published by the Bangladesh Bank is also questionable.”
Is Bitcoin Trading Available and Legal in Bangladesh?
Bitcoin trading is available in Bangladesh. The best Forex brokers in Bangladesh offer Bitcoin CFDs while the best crypto brokers for physical Bitcoin trading are located in well-regulated offshore jurisdictions but not physically present in Bangladesh.
Is Bitcoin legal in Bangladesh?
Bitcoin trading is legal in Bangladesh if Bangladeshi Bitcoin traders follow the steps below. The situation may change, and Bitcoin traders in Bangladesh must consult a legal professional to ensure they comply with rules and regulations.
Here is how Bangladeshi Bitcoin enthusiasts can trade Bitcoin:
- Open an account with a well-regulated offshore broker or trusted exchange
- Deposit US Dollars into your trading account
- Trade Bitcoin
Noteworthy:
- Bangladeshi Bitcoin traders cannot withdraw Bitcoin and must convert them to US Dollars before requesting a withdrawal to a financial institution in Bangladesh
Is Bitcoin Regulated and Safe in Bangladesh?
Bitcoin is unregulated in Bangladesh. The safety depends on which offshore brokers and exchanges Bangladeshi traders use. I urge Bitcoin traders to rely on the best Forex brokers in Bangladesh offering Bitcoin CFDs or the best crypto brokers granting physical transactions.
How to Start Trading Bitcoin in Bangladesh
Before opening an account with top crypto brokers in business-friendly offshore jurisdictions, beginners must invest in education. They should master trading psychology and risk management before funding an account in fiat currency.
How to Buy Bitcoin in Bangladesh
Buying Bitcoin in Bangladesh requires a few steps to ensure it is legal based on the current legal framework.
Here is how you can buy Bitcoin in Bangladesh with the best Forex brokers in Bangladesh offering Bitcoin CFDs:
- Open and fund an account
- Convert Bangladeshi Taka to US Dollars at your local bank
- Deposit US Dollars into your trading account
- Buy Bitcoin
Is Trading Bitcoin Halal for Islamic Traders in Bangladesh?
Trading Bitcoin is Halal for Islamic traders in Bangladesh if they transact in unleveraged Bitcoin or by opening a swap-free Islamic account offered by the best Forex brokers in Bangladesh for leveraged Bitcoin trading.
Trading Bitcoin in Bangladesh – Pros and Cons
Before opening an account with the best crypto brokers, Bangladeshi Bitcoin traders should consider the pros and cons of trading Bitcoin in Bangladesh.
The pros of trading Bitcoin in Bangladesh include the following:
- Available at the best Forex brokers in Bangladesh
- 24/7 trading
The cons of trading Bitcoin in Bangladesh include the following:
- Lack of government clarity on cryptocurrencies
- No Bitcoin-to-bank transactions
- Currency conversion fees
- Use of intermediaries and intermediate transactions to access Bitcoin
- Bitcoin remains illegal as tender in Bangladesh
Bottom Line
While the legality of Bitcoin in Bangladesh remains a grey area with staunch government opposition, it is likely to follow the path of e-hailing services. The government opposition turned into a regulated and fast-growing sector. Bitcoin remains illegal as a legal tender, but Bitcoin traders can transact Bitcoin with the best Forex brokers in Bangladesh, offering Bitcoin CFDs in well-regulated offshore jurisdictions.
