Bangladesh Crypto Ban: What It Means and How People Are Still Trading

When the Bangladesh crypto ban, a 2021 directive from the central bank that made trading, holding, or using cryptocurrency illegal for banks and financial institutions. Also known as crypto prohibition in Bangladesh, it was meant to stop money laundering and protect the taka—but it didn’t stop people from trading. The ban targets banks, not individuals. That loophole is why crypto still moves quietly through the country.

People in Bangladesh aren’t waiting for permission. They’re using P2P crypto, peer-to-peer platforms like LocalBitcoins and Paxful where users trade directly without banks. Also known as cash-for-crypto deals, this method lets buyers and sellers meet in person or use mobile wallets to swap Taka for Bitcoin and USDT. You won’t find ads for it on Facebook or Instagram, but WhatsApp groups and Telegram channels are full of traders. A student in Dhaka might buy $50 worth of Bitcoin from a seller in Chittagong using bKash, then hold it as a hedge against inflation. A shop owner in Sylhet might get paid in USDT for goods, then cash out through a trusted contact. This isn’t theory—it’s daily life for tens of thousands.

The government’s stance hasn’t changed. In 2023, they arrested people for running crypto exchanges and froze bank accounts linked to P2P activity. But enforcement is uneven. Rural areas see less scrutiny. Mobile data is cheap. And stablecoins like USDT are easier to move than cash across borders. The crypto regulations Bangladesh, a patchwork of vague warnings and occasional crackdowns with no clear legal framework. Also known as crypto ambiguity, this gray zone lets trading survive without full legal protection. That’s why so many users avoid exchanges like Binance or Coinbase—they know those platforms can be blocked or reported. Instead, they rely on offline trust networks and burner phones.

What’s next? The ban might tighten. Or it might collapse under its own weight. India and Nigeria faced similar restrictions—and both saw crypto adoption explode. Bangladesh is following the same path. The real story isn’t the ban. It’s how people are finding ways to trade, save, and send money without the system’s permission. Below, you’ll find real stories, practical tips, and warnings about scams targeting users who think they’re playing by the rules—but are actually walking into traps.