When the Bangladesh Bank, the central bank of Bangladesh that controls monetary policy and regulates financial institutions. Also known as Bangladesh Central Bank, it declared all cryptocurrency transactions illegal in 2017, it wasn’t just a warning—it was a criminal offense. Violators could face jail time, fines, or both. The bank’s stance was clear: no Bitcoin, no Ethereum, no Binance Coin. No exceptions. But here’s the twist: despite this total ban, Bangladesh ranks 35th in the world for crypto adoption. Over 3.1 million people are using crypto anyway. How? They’re not buying Bitcoin on exchanges. They’re using stablecoins, digital currencies pegged to real-world assets like the US dollar, designed to avoid price swings. Specifically, USDT—Tether. It’s the invisible currency running beneath the surface of Bangladesh’s financial system.
Why stablecoins? Because banks in Bangladesh make it nearly impossible to send money abroad. Fees are high, delays are weeks, and paperwork is brutal. For families relying on remittances from workers in the Middle East or Southeast Asia, crypto became the only reliable option. Someone in Malaysia sends $500 in USDT. Their family in Dhaka receives it in a wallet, then cashes out through a local trader—no bank involved. It’s faster, cheaper, and untraceable by the Bangladesh Bank, the central bank of Bangladesh that controls monetary policy and regulates financial institutions.. The bank knows this is happening. They’ve raided crypto traders, shut down money changers, and arrested people for holding wallets. But they can’t shut down the entire underground network. Every time they crack down, users just switch wallets or use a different peer-to-peer channel. Meanwhile, the cryptocurrency regulation Bangladesh, the legal framework, if any, that governs digital asset use in the country. remains frozen in 2017—no updates, no clarity, no path to compliance. The bank wants control, but it’s losing the war against necessity.
What you’ll find below are real stories and deep dives into how this contradiction plays out. You’ll see how Bangladesh’s crypto ban forced people to become experts in privacy, how stablecoins became the new cash, and why the bank’s threats haven’t stopped a single family from getting paid. You’ll also learn about similar bans in Iraq and Tunisia, and how Nigeria’s shift from ban to regulation makes Bangladesh’s stance look even more out of touch. This isn’t about speculation or trading. It’s about survival. And in Bangladesh, crypto isn’t a trend—it’s a lifeline.
Bitcoin trading in Bangladesh is not explicitly illegal, but it carries severe legal risks including prison time, asset seizures, and bank account freezes under money laundering laws. Despite a thriving underground market, authorities actively prosecute traders.