BB orders to tighten monitoring to stop cryptocurrency transactions

The Bangladesh Bank has ordered to tighten monitoring to be more cautious to stop the transaction and other activities regarding cryptocurrencies including bitcoin.

The Banking Regulation and Policy Department of the central bank has issued a circular in this regard on Wednesday.

The circular says various foreign Virtual Asset Service Providers (VASP) are conducting transactions through virtual currency, cryptocurrency and foreign currencies via their websites and apps using the customer accounts of some scheduled banks operating in Bangladesh.

They are involved in buying, selling, reselling, person to person exchange, transfer and other commercial activities in this way.

The circular ordered the banks to take steps to stop any kind of assistance in such activities and to increase monitoring in this purpose.

It also directed the banks to display notice in all branches including the head office, sub-branches and agent banking outlets to make the public aware on the issue. The homepage of the banks’ website should also publish the notice, the circular added.

Besides, the trainees of the banks in the training programmes should be informed thoroughly on these issues, it reads.

Earlier, Bangladesh Bank said in a circular that there is no approval for the exchange, transfer or trade of any virtual asset or currency in the country. Any such transaction in defiance of the instructions shall be an offense punishable under Section 23(1) of the Foreign Exchange Control Act.

The punishment in such cases could be imprisonment for seven years or fine or both.