Risk of Crypto Trading for Bangladesh Citizens in 2025
27 August 2025

Crypto Trading Risk Assessment Tool

Assess your potential legal and financial risks of crypto trading in Bangladesh based on your specific circumstances. This tool uses information from Bangladesh's current crypto regulations and enforcement practices.

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Buying Bitcoin or trading USDT in Bangladesh isn’t just risky-it’s illegal. And yet, thousands are doing it anyway. The Bangladesh Bank banned cryptocurrency in 2017, but that didn’t stop the underground market. It made it more dangerous.

It’s Not Just Against the Rules-It’s a Crime

The Bangladesh Bank’s 2017 order is clear: no cryptocurrency. No buying. No selling. No mining. No holding. Possessing Bitcoin or Ethereum can land you in court under anti-money laundering laws. The government doesn’t just discourage crypto-it prosecutes it. In 2024, at least 17 people were charged for crypto-related transactions. Most were local agents who exchanged Taka for USDT. One man got a six-month prison sentence after police traced his wallet through a bank transfer.

But here’s the twist: you can still download Binance and KuCoin from the Google Play Store in Bangladesh. No age verification. No ID check. No warning. The apps work fine. So why are people getting arrested? Because the law doesn’t care if the platform is accessible. It cares if you used your bank account, your phone number, or your local agent to move money. The system is designed to catch the people who make it work-not the ones who just use it.

How People Actually Buy Crypto (And Why It’s Risky)

There are two ways Bangladeshi citizens get crypto. Neither is safe.

The first is using international credit cards. You buy USDT on Binance with your Visa or Mastercard. But here’s the catch: your bank sees the transaction. It shows up as a payment to a foreign entity. If the bank flags it as suspicious-and they often do-you get a call. Your account gets frozen. You have to prove you didn’t break the law. Good luck explaining that you bought Bitcoin to save money.

The second way is through local agents. These are people you know-or think you know. A friend’s cousin. A guy at the tea stall. A Facebook page that says “Crypto Taka Exchange Dhaka.” You send them 50,000 Taka. They send you 490 USDT. They pocket the spread. They disappear if things go south. There’s no contract. No receipt. No recourse. In 2024, over 300 people reported losing money to fake agents in Chittagong alone. Some lost life savings. None got their money back.

The 2025 Crackdown Made Things Worse

In early 2025, the government rolled out new rules. To use any local exchange (yes, there are still a few), you now need biometric verification: fingerprint scan, facial recognition, and a live video call with a government-authorized agent. The process takes three days. Most people don’t have the time-or the patience. So they left.

Local exchanges lost 30% of their users in one week. The ones who stayed? They moved to Telegram. Now, crypto trading happens in private groups with names like “BTC Taka Hub” or “USDT Fast Delivery.” No KYC. No identity checks. Just a WhatsApp number and a deposit screenshot. Fraud rates jumped 200%. Scammers now pose as agents, take your money, and vanish. One group had 12,000 members. By August, 8,000 had been scammed. The admins? Gone.

A tea stall owner gives crypto to a boy while money vanishes into thin air.

Even Your Taxes Are a Trap

You might think, “If I’m not caught, I don’t owe taxes.” Wrong.

The National Board of Revenue doesn’t have a crypto tax law. But they don’t need one. They use the Income Tax Ordinance of 1984. That law says: if you make money, you pay tax. It doesn’t matter if the money came from selling drugs, smuggling, or Bitcoin. If you earned 200,000 Taka from crypto, you owe tax on it. But here’s the catch: if you file that return, you’re admitting you broke the law. If you don’t file, you’re committing tax fraud.

No one has been prosecuted for crypto tax evasion yet. But the government has the tools. They’re watching bank flows. They’re tracking Telegram groups. They’re building a database of wallet addresses linked to local phone numbers. The moment they decide to act, you’re on the hook for both the crime and the tax.

Why Neighboring Countries Are Different

India has a 30% tax on crypto profits. Pakistan lets you buy Bitcoin through licensed exchanges. Sri Lanka allows crypto trading with reporting. All of them treat crypto as a financial asset-even if they regulate it heavily.

Bangladesh doesn’t. It treats crypto like heroin. No licenses. No oversight. No legal protection. That means if you lose money on a scam, you can’t go to the police. If your wallet gets hacked, you can’t file a complaint. If a platform freezes your account, you have no customer service. You’re on your own.

And because of that, Bangladeshi traders are forced to use platforms with zero accountability. You’re not trading on Binance-you’re trading on a shadow version of it, run by strangers, with no safety net.

The Hidden Cost: Your Bank Account

If your bank finds out you’re trading crypto, they can close your account. No warning. No explanation. Just a letter saying your account is “non-compliant with banking regulations.”

That’s not a threat. It’s happening. In 2024, 427 Bangladeshi citizens reported losing access to their savings accounts after crypto transactions were flagged. Some couldn’t pay rent. Others lost their business loans. One woman lost her home loan approval because her bank saw a $5,000 transfer to a foreign crypto exchange.

Banks aren’t allowed to work with crypto users. So they don’t. Even if you’ve never traded, if your name is linked to someone who did-even through a friend-you could be flagged. The system doesn’t distinguish between innocent connections and active traders. It just blocks.

A child sits alone with broken devices and ghostly chat bubbles in the dark.

What Happens If You Get Caught?

There’s no official penalty list. But court records show a pattern:

- First offense: Fine of 100,000 to 500,000 Taka ($800-$4,000 USD) + confiscation of devices (phones, laptops)

- Second offense: Up to 2 years in prison + permanent banking ban

- If the amount exceeds 1 million Taka: Prosecution under the Money Laundering Prevention Act

The fines are steep. The prison time is real. And once you’re flagged, you’re on a watchlist. You’ll never get a government job. You’ll struggle to open a new bank account. Your children might face background checks for university admissions.

Is There Any Way Out?

No. Not legally.

There’s no path to compliance. No licensed exchange. No legal wallet. No tax amnesty. The government has made it clear: crypto has no place in Bangladesh’s financial system. And they’re not backing down.

The underground market keeps growing-not because people are smart, but because they have no other options. Remittances are down. Inflation is up. The Taka is losing value. People turn to crypto because they’re desperate. But desperation doesn’t make it safe.

Final Reality Check

Crypto trading in Bangladesh isn’t a gamble. It’s a gamble with your freedom, your money, your bank account, and your future. The risks aren’t theoretical. They’re happening every day.

You won’t get rich. You won’t be protected. You won’t be legal.

And when the crackdown comes-and it will-you won’t have a second chance.

If you’re thinking about trading crypto in Bangladesh, ask yourself: Is the risk worth it? Because once you’re in, there’s no easy way out.

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