Virtual currencies not allowed
Bangladesh Bank yesterday reiterated that it does not allow holding or trading of any kind of virtual coin or cryptocurrency in the country.
It has asked all to refrain from trading any kind of virtual currency as the definition of "currency" provided by the Foreign Exchange Regulation Act, 1947 does not recognise virtual currencies.
Virtual currencies, a subset of virtual assets, are not approved by the central bank for the settlement of any type of foreign exchange transaction or for investment as per the act, according to a BB notice.
Virtual currencies or virtual assets have no financial claim embedded and neither issued by any sovereign nor guaranteed by any jurisdiction.
Thus, their value is highly volatile and associated with high financial risks.
The BB in the notice said borderless transactions of unregulated virtual currencies were growing fast and being exchanged with some other foreign currencies.
Treating virtual currency as an alternative form for foreign exchange transactions was a contravention of the act.