Crypto Laws in Bangladesh: What’s Allowed, What’s Banned, and How People Still Trade

When it comes to crypto laws in Bangladesh, a strict regulatory stance that bans cryptocurrency transactions under the Foreign Exchange Regulation Act. Also known as Bangladesh cryptocurrency ban, it makes buying, selling, or trading Bitcoin and other digital assets illegal for banks and financial institutions. But that doesn’t mean people aren’t doing it—millions are.

The Bangladesh cryptocurrency ban, enforced by the central bank since 2017. Also known as crypto regulation Asia, targets financial institutions, not individuals. That loophole lets people use P2P crypto, peer-to-peer platforms like LocalBitcoins and Paxful to trade directly with others. Also known as crypto trading Bangladesh, these platforms let users pay in cash, mobile banking, or bank transfers—no bank account linked to crypto needed.

Many traders use stablecoins, especially USDT, to move value across borders without triggering bank alerts. Also known as Bitcoin Bangladesh, these tokens act like digital cash that holds its value. Students, freelancers, and small business owners rely on them to get paid from overseas clients, pay for tools like Canva or Notion, or send money home to family. The government can block exchanges, but it can’t block a WhatsApp group where someone hands over 50,000 taka for 1 USDT.

Why hasn’t the ban worked? Because enforcement is weak. The central bank can shut down local crypto businesses, but it can’t track every private trade. There’s no real way to prove who owns a wallet, and cash-based P2P deals leave no digital trail. Even if you’re caught, the punishment is usually a fine—not jail. That’s why the underground market keeps growing. People aren’t breaking the law because they’re reckless—they’re doing it because they have no other choice. Remittances are a lifeline. Inflation eats away at savings. And the banking system doesn’t serve them.

What you’ll find below isn’t a list of legal advice. It’s a collection of real stories and warnings from people navigating this gray zone. You’ll see how traders in Dhaka avoid detection, what scams target crypto users here, how local exchanges got shut down, and why some people are turning to offshore platforms. There are no official guides here—just what’s actually happening on the ground. If you’re in Bangladesh and using crypto, you need to know the risks. If you’re outside Bangladesh and wondering how crypto survives under bans, this is your window into how it works when the rules say no—but life says yes.