Summary
- Bangladesh ranks 13th in the global crypto adoption index, despite the fact that domestic crypto transactions are illegal.
- The interest in crypto reflects a range of factors, including a digitally savvy and crypto-interested youth population and a means of sending and receiving remittance payments.
- At this stage, the authorities show little interest in formulating legislation to govern the sector, but with adoption continuing to rise, pressure for change is growing.
- For further stories about how crypto is being adopted worldwide, visit our Crypto in Action pages.
What’s fueling crypto adoption in Bangladesh?
Several factors fuel adoption, including interest in crypto’s potential, particularly among the country’s younger and more digitally savvy population. Remittance payments are important to Bangladeshis, registering an all-time high of more than $30 billion in 2024-2025. Making these payments using P2P networks is faster and typically cheaper. It also bypasses the country’s traditional banking, which is bureaucratic, slow, and still excludes large parts of the population.
It is estimated that approximately 4.3 million people (2.46% of the population) own crypto. The crypto platform, Binance, revealed in 2024 that it had more than 600,000 Bangladeshi users. The most popular coins are bitcoin and Ethereum, and Binance and Coinbase are the most popular exchanges, although Bybit and eToro also feature commonly.
Press reports suggest that mobile banking service agents are involved in crypto trading, receiving ‘cash out’ (converting digital payments into fiat currency) payments. Popular among students and the country’s youth are ‘Airdrops’, which offer free crypto for those willing to undertake small online tasks.
What’s the authorities’ attitude to crypto and blockchain?
The authorities have historically taken a strong line against the sector, making it illegal to use or trade crypto. There have been few signs of this softening, but there has been a national blockchain strategy under way since 2020, and the authorities show real interest in developing this aspect of the sector.
The central bank first warned against the use of crypto in 2014. In 2017, it toughened its stance and issued a ‘cautionary notice’ in which it outlined its position and cited several coins. It warned that crypto was illegal in Bangladesh and stated that bitcoin transactions were not authorized by the bank or any regulatory agencies.
It also stated that cryptocurrencies “do not conform with the provisions under the Foreign Exchange Regulation Act, 1947.” This makes it illegal to use crypto to settle any foreign exchange transaction, which hampers businesses’ use of crypto to make cross-border payments. Other laws used to support the prohibition of crypto’s use include the Anti-Terrorism Act, 2009, and the Money Laundering Prevention Act, 2012.
The central bank also warned that because crypto transactions are not approved by any central payment system, users could be financially harmed and potentially face legal consequences. Additionally, the bank called on Bangladeshis to refrain from supporting, making, or advertising any sort of crypto transaction.
This line has been maintained, and similar warnings have been issued at regular intervals.
Concurrently, the authorities are pursuing a blockchain strategy. The government sees value in blockchain as a means to modernize the country’s bureaucratic frameworks, particularly in areas like land records and identity systems.
Reflecting this, in 2020, the government published its National Blockchain Strategy, titled Pathway to be a Blockchain-enabled Nation. Citing the opportunities and challenges of the Fourth Industrial Revolution (4IR), the strategy noted that blockchain was a “foundational technology” and a “driving force” behind 4IR.
Who is responsible for overseeing crypto?
There are a large number of agencies responsible for overseeing and enforcing the authorities’ position on crypto. Notably, they all appear to follow the same line, with none showing any obvious difference in position from any of the others. Among these are the Criminal Investigation Department (CID), which investigates and prosecutes criminal activities associated with crypto; the Financial Intelligence Unit (FIU), which seeks to ensure that illegal digital asset activities are detected and pursued; and the Bangladesh Computer Council (BCC), which is responsible for the National Blockchain Strategy and other technological developments.
Looking ahead, any future developments in crypto, particularly legislation, will likely involve the finance ministry and the National Board of Revenue (NBR), as the country’s taxation authority.
Any signs that the hard line on crypto is changing?
It has been argued that because Bangladesh has no specific law related to crypto and instead because the ban rests on the use of other legislation, a ‘gray area’ has developed.
Notably, the central bank has told the CID that owning or transacting in crypto is not a punishable offense, which only makes the situation more opaque.
Adding to this uncertainty, there is no legislation governing crypto taxation, but the NBR treats crypto earnings as taxable income under existing legislation.
Calls are being made for the promulgation of legislation to help clarify things, but the authorities show no signs of responding. Instead, blockchain policy continues to develop, while crypto remains curtailed.
But this isn’t stopping some of the country’s citizens from owning and transacting crypto, despite the fact that their actions are effectively illegal. This is likely because in reality, the authorities don’t take action against everyday crypto activity and are more focused on major criminal wrongdoing using crypto.
The idea of a CBDC has been touted as part of a broader reform initiative, which aims to digitize public services and stabilize the financial sector. First announced by then-Finance Minister Mustafa Kamal in June 2022 during his budget speech, the central bank has conducted a feasibility study, and a pilot was launched in 2024. As of 2025, there were no further developments.
Timeline of developments
2014
In August, the Bitcoin Foundation Bangladesh was formed (and quickly suspended, but emerged years later before disappearing again).
A month later, the central bank issued a warning about the use of crypto.
2017
In December, the central bank issued a ‘cautionary notice’ on crypto in which it outlined its position and cited several coins of concern.
2018
The Digital Security Act came into force. This didn’t expressly relate to crypto activities, but instead referred to digital content security.
2022
The central bank reiterated its warnings about crypto, calling for greater monitoring of transactions, specifically by VASPs. It called on banks to stop any kind of assistance for these types of activities and better monitor the situation.
In June, the finance minister announced a feasibility study for a CBDC.
In December, the Bitcoin Foundation announced its first official affiliate group in Asia, the Bitcoin Foundation Bangladesh.
2023
In August, Binance announced a strategic partnership with WellxPay payment service to be rolled out in Bangladesh and India.
Outlook
A rank of 13 is high for a country with such a strong line against crypto. It is likely that for the majority, adoption is small scale and underscores a need, typically remittance payments. Others, particularly the youth and students, are interested in dabbling in crypto, but don’t have the means to pursue it to any significant degree.
Against a backdrop of both growing interest and problems (typically scams), there are calls for discussion, engagement, education, and ultimately regulation rather than a continued hard line.
The authorities, however, show little inclination to change tack, and as a result, the country has neither a comprehensive framework that will address the growing gray areas in crypto usage, nor a fully deployed blockchain platform.
