The central bank of Bangladesh has issued a new statement suggesting that the use of digital currency is now illegal in the country.
The Bangladesh Bank, as originally reported by the Agence France-Presse (AFP), has said that the use of bitcoin and other cryptocurrencies is unlawful under existing anti-money laundering (AML) statutes.
The Bangladesh Bank noted in its advisory that harsh penalties could be imposed on those who use digital currencies, saying:
“Bitcoin is not a legal tender of any country. Any transaction through bitcoin or any other cryptocurrency is a punishable offense.”
AFP also reportedly spoke to a representative from the bank, who said that the act of using a digital currency could be punishable by as much as 12 years in prison.
Bangladesh recently enacted Money Laundering Prevention Act, 2012, a revision of a 2009 law that aimed to bring the country’s AML policies up to global standards.
Popularity leads to announcement
Notably, the bank’s decision to outlaw digital currency transactions derived from increasing reports in the local media regarding the use of bitcoin by domestic residents.
The announcement follows the formation of the Bitcoin Foundation’s official chapter in Bangladesh, the organisation’s first affiliate program in Asia. The Bitcoin Foundation Bangladesh opened to great fanfare in mid-August and counts international bitcoin evangelist Roger Ver among its advisors.
At the time, members of the group expressed optimism that formal recognition of the group would lead to greater domestic awareness of the technology.
At press time, the Bitcoin Foundation and Ver had yet to respond to requests for comment.
Latest nation to restrict bitcoin
With the announcement, the Bangladesh Bank became the latest nation to restrict bitcoin activities outright, although it is not clear whether the company has enacted a formal digital currency ban.
Bolivia’s central bank, for example, banned bitcoin earlier this year, saying that it had taken the action in order to protect both Bolivia’s national currency, the boliviano, and its citizens.
Soon after, bitcoin was banned in Ecuador as part of a legislative vote that created a new state-backed digital money. Though not named specifically in the bill, the ban was formally affirmed in statements to local businesses.
While other central banks around the world have issued warnings about the use of digital currency, potential dangers and the risk of fraudulent applications, many have avoided outright restrictions.
CoinDesk is monitoring this developing story.
Bangladesh flag image via Shutterstock
Bangladesh
Original author: Stan Higgins
