Bangladesh Bank warns not to use cryptocurrency
Bangladesh Bank has asked the Criminal Investigation Department (CID) of the police to refrain from transacting cryptocurrency in the country after saying that the transaction is not a crime. The central bank says there are financial and legal risks to using cryptocurrency.
Bangladesh Bank also clarified this risk in clarification and warning and notification in the public interest on Thursday. It has been said that basically in online-based networks, payment and settlement of money is done in virtual currency. No central authority or payment system regulatory authority recognizes this currency. That is why customers can face various risks including the potential financial, legal risks of virtual currency. Bangladesh Bank has requested the public to support transactions in virtual currencies like Bitcoin and refrain from promoting it to avoid potential financial and legal risks.
According to Bangladesh Bank, recent reports from various media outlets and the Internet indicate that cryptocurrencies such as Bitcoin, Ethereum, Ripple and Lightcoin are being traded in different places. These virtual currencies are not issued by the legal authorities of any country. As a result, no financial claim against this currency has been accepted. Transactions in these currencies are not approved by Bangladesh Bank or any other regulatory body. That is why its use is in the Foreign Exchange Control Act, 1947; The Anti-Terrorism Act, 2009 and the Prevention of Money Laundering Act, 2012 are not supported. Transactions with unnamed or pseudonymous partners online may inadvertently violate anti-money laundering and anti-terrorism financing laws.
On 24 December 2016, Bangladesh Bank issued a notification on cryptocurrency. That position has not changed. Bangladesh Bank claims that Bangladesh Bank sent a letter to the investigating officer of a particular case for confidential use. That letter has also been presented fragmentarily in some special newspapers. This is by no means a publicity stunt.
Earlier, in a letter to the Criminal Investigation Department (CID), the central bank had said that the preservation of cryptocurrency was not a crime.
Tags: CryptocurrencyRiskDigital transactionsBangladesh BankTransactionsCID
