Cryptocurrency continues to expand globally, functioning in many ways like a parallel stock market. While its popularity grows worldwide, in Bangladesh, the use of crypto remains illegal. Nevertheless, digital transaction opportunities and a growing interest among young people have fueled increased engagement with cryptocurrencies, particularly among freelancers and tech-savvy youth.
The Daily Industry reports that platforms like Binance dominate crypto trading in Bangladesh, allowing users to buy, sell, and store digital currencies such as Bitcoin and Ethereum. Despite the central bank’s repeated warnings, many Bangladeshis are now relying on these platforms to receive payments, conduct transactions, and even engage in online betting and other unregulated financial activities.
Central Bank Warnings and Lack of Policy: Bangladesh Bank has long discouraged cryptocurrency transactions. In 2014, the central bank issued a warning on its website advising the public against engaging in digital currency exchanges like Bitcoin. The notice emphasized that such transactions could potentially violate laws related to money laundering and terrorism financing.
Despite these warnings, Bangladesh Bank has yet to create a formal regulatory framework for cryptocurrencies. The Daily Industry notes that the bank previously considered issuing its own digital currency but the project has not progressed beyond preliminary discussions.
In the 2022-23 fiscal year, the government first hinted at launching a central bank digital currency (CBDC). Finance Minister AHM Mustafa Kamal announced in the budget speech that the central bank would explore the feasibility of digital currency. However, even after three subsequent budgets, the initiative remains largely on paper. Bangladesh Bank’s Executive Director and spokesperson of the Payments Systems Department, Md. Arif Hossain Khan, told The Daily Industry, “Since I took charge of the department, discussions on launching a digital currency have not officially taken place. However, privately, many individuals have expressed interest in its introduction. Launching a digital currency is a complex process and will require time.”
Neighboring India, by contrast, launched its digital currency in December 2022, signaling a significant regional shift toward digital money.
Global Cryptocurrency Market Overview: Cryptocurrency first emerged globally in 2009. Over the past 16 years, the market has expanded thousands of times in value. Bitcoin remains the most widely recognized cryptocurrency, with a total market capitalization of approximately $916.16 billion. Ethereum follows at $483.8 billion, Binance Coin at $168.14 billion, Tether at $77.99 billion, XRP at $47.54 billion, USD Coin at $42.16 billion, and Cardano at $32.7 billion. There are currently between 18,000 and 37,000 cryptocurrencies worldwide. CoinGecko tracks over 18,000 active coins, while data from Tokenjam indicates that by the end of 2022, over 37 million tokens had been created, many of which are now inactive.
Major cryptocurrency exchanges include Bebit, KuCoin, BitPay, Bitget, and Tonkeeper. However, Binance, founded by Changpeng Zhao in 2017, is the world’s largest cryptocurrency exchange. Initially established in China, regulatory pressure forced the company to relocate to Japan, and later to Malta. Today, Binance operates as a decentralized platform, serving users in over 190 countries. Users can trade thousands of altcoins, including Bitcoin and Ethereum, and potentially earn additional income through holding crypto.
However, trading comes with the risk of financial losses, particularly due to market volatility.
Cryptocurrency Use in Bangladesh: In Bangladesh, Binance is widely used not only by freelancers but also for online betting and other illicit activities. Since the government strictly regulates gambling and online betting, these sites cannot directly access banking channels, making cryptocurrency exchanges a convenient alternative. This unregulated flow of funds increases the risk of money laundering and uncontrolled financial activity.
The Daily Industry highlights that freelancers earning foreign income often rely on cryptocurrencies due to the complexity of foreign currency transfers. Payments received on Binance in Bitcoin, Ethereum, or other altcoins can be converted to local currency through agents affiliated with the platform, then withdrawn via bKash, Nagad, Rocket, Upay, or traditional banks.
Kayes Mohammad Sohel, a freelance worker based in Mirpur, Dhaka, told The Daily Industry, “I receive many payments in crypto, especially via Binance. It’s much easier to handle payments there, and sometimes I can sell accumulated dollars at a higher rate if the exchange value rises.”
The platform also facilitates online betting, allowing large sums to flow out of the country. According to Bangladesh Bank and other sources, even though cryptocurrency was declared illegal in 2014, trading and storage under the Foreign Exchange Regulation Act remain strictly unauthorized. Further warnings issued in 2017 and 2021 reiterated that crypto transactions could lead to significant financial loss and legal complications. The volatility of global cryptocurrency markets and the potential for fraud makes these transactions highly risky.
Rising Popularity Despite Legal Risks: The Daily Industry notes that despite regulatory restrictions, cryptocurrency usage in Bangladesh is steadily rising. Experts attribute this to the growth of digital platforms, increasing foreign remittances, and the popularity of online freelance work. Young people, in particular, are more willing to engage in crypto trading, even at the risk of potential losses.
Blockchain analytics firm Chainalysis reported in a recent study that 151 countries actively engage with cryptocurrencies in some form. India, Nigeria, and Indonesia top the list in terms of crypto adoption, while Bangladesh ranks 35th globally. In comparison, Myanmar ranks 78th, Pakistan 9th, Sri Lanka 72nd, and Nepal 71st. The United States ranks 4th, Canada 18th, Russia 7th, China 20th, Japan 23rd, and Australia 39th.
Experts argue that while the government has implemented strict oversight and legal measures, digital platforms continue to enable clandestine cryptocurrency use. Users face both significant opportunities and considerable risks.
Expert Insights: Cryptocurrency experts told The Daily Industry that global adoption trends suggest that digital currencies are increasingly becoming part of the financial mainstream. While Bangladesh has not legalized crypto, demand from the youth and freelancers indicates a latent market that could benefit from formal regulatory structures. Experts also warn that failure to regulate may exacerbate money laundering risks, tax evasion, and financial instability.
“Cryptocurrency is a double-edged sword,” a blockchain specialist told The Daily Industry. “It can empower digital economies but also facilitates unregulated financial flows. Bangladesh needs a cautious yet progressive approach to digital currencies, possibly through a central bank-backed system.”
The Way Forward: While Bangladesh Bank explores the feasibility of a digital currency, the immediate reality is that cryptocurrency usage continues to grow under the radar. Freelancers and tech-savvy youth rely on Binance and similar platforms for foreign payments, while illegal online activities leverage the same channels for unmonitored transactions.
The Daily Industry concludes that although Bangladesh has yet to provide legal legitimacy for cryptocurrencies, the combination of digital payment needs, cross-border transactions, and platform accessibility ensures that crypto use is unlikely to decline. The challenge for regulators will be balancing innovation with risk mitigation, ensuring that Bangladesh does not fall behind in the global digital economy while safeguarding financial integrity.
