Cryptocurrency Trading, promotion and all kinds of operation is Illegal

Summary:

The ongoing confusion over the legality of virtual currency has now been cleared out. Now, such virtual transactions are listed as crimes under the Foreign Exchange Act 1947, Anti-terrorism Act 2009, and the Prevention of Money Laundering Act 2012.

Content:

A cryptocurrency is a form of payment that can be exchanged online for goods and services. Many companies have issued their own currencies, often called tokens, and these can be traded specifically for the good or service that the company provides.

Transactions with cryptocurrency like Bitcoin, Ethereum, Ripple, and Litecoin as well as their promotion are now listed as illegal as confirmed by both Bangladesh Bank and CID on Thursday. Parties who conduct these online transactions use artificial names where there is a high risk of money laundering and financial crimes.

Previously, on 24 December 2016, the Bangladesh bank had issued a warning on their website to refrain from trading artificial currencies such as Bitcoin. The other day, in a letter it used the words ‘may violate the laws…..’ which created confusion over the legality of cryptocurrencies.

Finally, on 4th August, Wednesday, Kamrul Ahsan, additional deputy general inspector of the CID told the business standard that the transactions made under this kind of artificial coins would violate three laws of the country. The decentralized structure of cryptocurrency allows them to flow out of the control of governments and central authorities.

And Bangladesh Bank also took the initiative in its public notice that any virtual currency would not be allowed as per the Foreign Exchange Regulation Act 1947, The Money laundering Prevention Act 2012 and the Anti-terrorism Act 2009.

Although, Bangladesh Bank has not yet formulated any policy on cryptocurrency. Moreover, there is a talk among the government bodies that the cryptocurrency might not be rejected completely. For example, in the National Blockchain Strategy launched in March 2020 by ICT Division, it said $23 billion had been invested in blockchain startups since 2013.

Article and Picture Source: The Business Standard

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