Cryptocurrency transactions are discouraged by Bangladesh.
[ Neither be motivated nor inspired by this blog post. The policy of Banglaesh on cryptocurrency is neither fixed nor stable. This blog isn't responsible for any crypto-crime or crypto-transaction. ]
In response to CID's question, Bangladesh Bank expressed its opinion -
Bangladesh Bank believes that ownership, preservation or transaction of cryptocurrency is not a crime. The Foreign Monetary Policy Division of Bangladesh Bank has given this opinion in a letter sent to the Criminal Investigation Department (CID) of the police recently.
Cryptocurrency is a kind of virtual currency. The number of such currencies transacted through the internet is now more than eight thousand. However, the most popular of these is Bitcoin. The cryptocurrency was invented in late 2006 by a group of software scientists named Satoshi Nakamoto, a Japanese citizen.
On May 18, Shafiul Azam, assistant director of Bangladesh Bank's foreign exchange policy department, told CID about the bank's position on cryptocurrency. "Even if the ownership, preservation or transaction of cryptocurrency is not recognized, it does not appear to be a crime," he wrote in the letter. Crimes can be committed under the Anti-Terrorism Act, 2009 and the Prevention of Money Laundering Act, 2012. If applicable, CID may inquire into this.
In the same letter, Bangladesh Bank stated that the current virtual currency market in the world is two trillion US dollars. The currency was not recognized by any legal authority in the early stages of cryptocurrency circulation. But now the central banks / currency regulators of several countries (such as Japan, Singapore, UAE, USA) have taken steps to legalize cryptocurrency transactions. Bangladesh Bank has so far not allowed transactions or reserves in such private currencies as in cryptocurrencies.
At the initiative of the Department of Foreign Monetary Policy, Bangladesh Bank also issued a warning on December 24, 2016 on the website of Bangladesh Bank to refrain from trading in artificial currency (such as Bitcoin). At the time, Bangladesh Bank said in a statement that transactions in virtual currencies could violate anti-money laundering and anti-terrorism financing laws. Bangladesh Bank has not yet formulated any policy on cryptocurrency.
However, in the meantime, there is talk among the companies about not rejecting cryptocurrency at all. For example, the government's Information and Communication Technology Division. In March 2020, the department launched the National Blockchain Strategy. In the strategy paper, they said that blockchain startups have invested ২ 23 billion since 2013. This investment may increase further in the future. This is an opportunity for Bangladeshi software industries. But as the use of cryptocurrency is banned, the software industry in Bangladesh is missing out on attractive opportunities. However, the strategy paper also said that in the absence of appropriate technology, law and policy framework, such domains could pave the way for terrorist activities in the country. So how to deal with this dilemma should be considered.
Blockchain is the method of storing information. In this method, one information after another is stored in different blocks like a chain. Cryptocurrency transaction information is protected through blockchain networks. As such, the transactions of this currency are not supervised by the Central Bank. The two Internet users make the transaction directly without revealing their identities. This currency can be transacted by opening an account on the internet by opening an ID of 28 to 34 characters. This virtual coin is stored in a digital wallet.
However, in an official statement, Bangladesh Bank spokesperson Sirajul Islam, executive director and spokesperson of Bangladesh Bank, said, "There is no possibility of approving bitcoin soon." Bangladesh Bank is looking into the pros and cons of Bitcoin. '
Source: Prothom Alo
