The Quiet Rise of Cryptocurrency in Bangladesh: Navigating Bans and Embracing Innovation

Cryptocurrency Surges in Bangladesh Despite Official Bans

Dhaka, Bangladesh – In a surprising twist, cryptocurrency has quietly gained traction in Bangladesh, positioning the country among the top adopters globally by 2025. Despite stringent regulations and outright bans, a recent report by Chainalysis ranks Bangladesh 13th worldwide in crypto usage, while TRM Labs places it at 14th. An estimated 3.1 million Bangladeshis now own crypto wallets, driven largely by the need for remittances and the allure of dollar-pegged stablecoins.

Banned Since 2017 – Yet Enforcement Is Patchy

Since 2017, the Bangladesh Bank has issued repeated warnings against cryptocurrency, declaring it unauthorized legal tender. The central bank’s 2022 regulations reaffirmed that “virtual currencies…are not permitted” within the country. With no domestic exchanges licensed, unauthorized crypto trading is treated as illegal, leading to police crackdowns on underground operations. In one notable case last year, authorities uncovered Tk 12.78 crore in illicit transactions.

Despite these warnings, enforcement remains inconsistent. While the central bank continues to advise against crypto activities, local IT leaders argue that the potential of blockchain technology cannot be ignored. Syed Almas Kabir, head of the Bangladesh Association of Software and Information Services (BASIS), emphasized, “Cryptocurrency is the future…we cannot be in denial,” urging the government to embrace this technological shift.

Remittances & Dollar Shortages: The Real Rocket Fuel

Economic pressures are fueling the appeal of cryptocurrency in Bangladesh, a nation that ranks among the world’s largest remittance recipients. Official inflows exceeded $20 billion in FY2023-2024, yet high remittance costs—averaging 5.4% in South Asia—remain a significant barrier. Analysts suggest that utilizing USD-pegged stablecoins could drastically reduce fees and expedite cross-border payments. If just a third of remittances transitioned to dollar-stable tokens with a 1.5% fee, Bangladeshi families could save approximately $260 million annually.

Freelancers, often facing slow international payouts, are increasingly turning to stablecoins for instant transactions. As foreign reserves dwindled in 2024-2025, many began viewing stablecoins like USDT and USDC as a means to safeguard their dollar-value savings. For a large segment of the unbanked or underbanked population, cryptocurrency offers an unofficial hard currency alternative, making it a vital payment channel amid inflation and limited access to foreign exchange.

How Bangladeshis Actually Buy Crypto in 2025

In practice, Bangladeshis are leveraging global crypto infrastructure. Centralized exchanges (CEX) such as Binance and Coinbase are popular, even without local regulation. Users typically fund their accounts via mobile banking apps like bKash or through over-the-counter (OTC) brokers. Peer-to-peer (P2P) networks are also thriving, with numerous offers circulating on social media for purchasing Bitcoin through local payment methods.

Despite the ban on crypto mining, which authorities could prosecute under existing laws, the country’s burgeoning IT sector and expanding mobile finance infrastructure hint at a potential future for blockchain technology. The 2020 National Blockchain Strategy acknowledged the sector’s promise, citing global investments of around $23 billion in blockchain ventures.

Underground Today, Regulated Tomorrow?

While the informal rise of cryptocurrency in Bangladesh presents clear risks—scams, market manipulation, and a lack of consumer protection—experts warn that strict bans could stifle opportunities. With smart regulation, similar to approaches taken in India and Pakistan, Bangladesh could mitigate abuse while fostering fintech growth. Global organizations like the IMF and World Bank continue to advocate for clear regulatory frameworks.

For now, crypto activity remains largely underground, with millions trading stablecoins, Bitcoin, and Ethereum on foreign platforms. As BASIS’s Syed Kabir aptly notes, blockchain technology is on the horizon. The pressing question is whether Bangladesh will maintain its prohibition or shift towards a regulated framework, especially given its youthful population and robust remittance flows.

Author: Ayanfe Fakunle

The editorial team at Disruption Banking has taken all precautions to ensure that no persons or organizations have been adversely affected or offered any sort of financial advice in this article. This article is most definitely not financial advice.

See Also:

• India’s Crypto Boom in 2025 | Disruption Banking
• The Rise in Popularity of Crypto in Pakistan | Disruption Banking
• How Have Protests In Bangladesh Impacted Remittances? | Disruption Banking