BB asks all to refrain from trading of ‘Bitcoin’

Bangladesh Bank on Monday urged all concerned to refrain from trading of ‘Bitcoin’ or any sort of artificial currency.

Bitcoin is a virtual currency traded through a software-based online payment system. Payments of such currency work peer-to-peer without a central repository or administrator.

In a circular, the central bank stated that trading of online-based ‘crypto currency’ Bitcoin through different exchange platforms has come to the knowledge of the central bank through some media reports. 

Bitcoin is not a legal tender issued by any country. So, trading of any Bitcoin or any artificial currency is not recognised by the BB, the circular added.

Issuing a warning against the trading of Bitcoin, the BB said any trading of such currency will be a violation of the Foreign Exchange Control Act 1947 and the Money Laundering Act 2012.

In such a situation, the Bangladesh Bank is requesting people to refrain from trading of such currency to avert a financial and legal risk, said the central bank circular.