The Bangladesh Bank (BB) on Thursday issued a circular restricting the use and holding of virtual assets and virtual currencies, arguing these are not permitted by the central bank.
The BB asked all individuals/ entities/institutions operating in Bangladesh to refrain from dealing in virtual assets and virtual currencies.
They have also been asked to skip providing any facilitation in favour of doing business, activities and operations associated with the exchange/transfer/trading of virtual assets or virtual currencies.
Retention of export proceeds abroad in any form without limiting to equity/portfolio investment, purchase of physical/virtual assets and maintenance of accounts regardless of currencies, including cryptocurrencies, constitute a contravention of the Foreign Exchange Regulation Act-1947, reads the circular.
Any transaction made in/from/to Bangladesh for obtaining virtual assets or their subset, virtual currencies, is not permitted by the central bank.
Providing any facilitation in favour of doing business, activities and operations associated with the exchange/transfer/trading of virtual assets or virtual currencies is also not permitted.
The circular was issued by the Foreign Exchange Policy Department of the Bangladesh Bank and signed by its director Md Sarwar Hossain.
It quoted a definition of virtual assets as a digital representation of value can be digitally traded or transferred, and can be used for payment or investment purposes (according to Financial Action Task Force).
The circular said currency as per the section concerned of the foreign exchange regulation does not recognise such currency.
Such currencies and assets have no financial claim embedded and neither issued by any sovereign nor guaranteed by any jurisdiction, it reads.
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