Legality of bit coins in Bangladesh

In 2009, Bitcoin is a cryptographic infringement invented by a software developer named Mr. Tetsu Nakamoto, with the goal of creating a new electronic cash system "completely dispersed without server and central authority". Clearly, this idea is independent of the central authority that can be electronically transferred in a safe, verifiable and invariable manner,

Bangladesh is one of the only six countries in the world and is considered "hostile" to bit coins. Bangladesh Bank issued the first "warning" for the use of Bitcoin in 2014. Because this warning may include fraudulent acts specified in the Foreign Exchange Regulation Act of 1947 and the 2012 Anti-Money Laundering Act, the central bank may notice that these virtual currencies are from any country It expressly ratified cryptocurrencies' transactions, explicitly stating that it was not issued legal bidding, not centralized payment system, and not approved by central payment system.

With recent global beat coins and other encrypted distribution, Bangladesh Bank issued "Cautionary Notice" on the website on December 24, 2017. As another law that could violate the use of bit coins, citizens further refrain from carrying out, aiding and advertising all kinds of transactions using virtual currencies such as Bitcoin, Ethereum, Ripple, Litecoin I was asked.

The Bangladeshi Bank's 2014 warning is not widely reported in local news but in international press and bit coin forums Bangladesh banned bit coins and bit coin users detained until 12 years It is warning that there is a possibility.

However, from the two notes published by the central bank, the regulatory authorities "forbid" or "criminalize" the use of bit coins unless they are used to commit an existing crime under Foreign Exchange There is a regulation law, an anti-money laundering law, an anti-terrorism law, etc., which are clearly insufficient for that. It can be argued that using the usual currency to commit a crime under the same law would be punished as well, and such bit coins are not illegal, but the use committing crimes,

You can see that the declaration that it is not a legal bid by the Bangladesh Bank resonates with regulatory compliance in most countries. However, even though a bit coin is not recognized as legitimate bidding or not allowed, it does not necessarily make it illegal. The legal basis of the "warning" issued by the Bangladesh Bank is also doubtful.

The Foreign Exchange Regulation Law and the Anti-Money Laundering Law include provisions concerning penalties and criminal liability in cases where trading, importing, exporting, or not permitted through dealerships without permission of Bangladesh is not permitted, and criminal or foreign currency Illegal buying and selling. The definition of currency is described in section 2 (b) of the Foreign Exchange Control Law.

(I) all coins, banknotes, banknotes, money orders, checks, drafts, travelers checks, letters of credit, notes and promissory notes. And

(Ii) other similar physical or non-physical means as informed from time to time from Bangladesh Bank, or both

Despite its name, bit coins are not coins and also do not match any of the items listed in Article 2 (b) (i). With regard to paragraph 2 (b) (ii), there is a positive obligation to make a legal notice to the Bangladeshi Bank and declare that encryption or bit coin is classified as such, . Therefore, bit coins or other virtual encrypted currencies may not fit within the definition of "currency" under Article 2 (b) of the Foreign Exchange Control Law. If so, criminal offenses on trading foreign currencies without permission are probably obviously not capturing bit coins or crypt cults.

According to Section 2 (s) of the Anti-Money Laundering Act, foreign currency means the foreign exchange defined under Article 2 (d) of the Foreign Exchange Control Law. However, similarly, the definition of foreign currency in the Anti-Money Laundering Law is called a foreign currency that does not cover bit coins and crypt cults, as discussed above.

Based on what kind of evidence it is unclear what "warning" about the legitimacy of bit coins has been issued so far. This warning also refers to the anti-terrorism law which crimes the crime of terrorist funds, but this law does not mention anything about bit coins, cryptographic violations, and other currencies.