Major governmental moves, regulatory developments, and investments define the increase of the cryptocurrency market in Bangladesh. These are an overview of government initiatives, investments majorly announced, regulatory compliance, and key players in the cryptocurrency market of Bangladesh.
AUGUST 2023: Digital Economy Hubs The Government of Bangladesh, in coordination with other public sector stakeholders and industry associations, began an initiative to create two digital economy hubs to bring forth the ICT sector. These reside in the environments of BASIS and BACCO. They offer policy support to stimulate digital economic growth, skill enhancement programs, and a Center for Excellence for the promotion of digital technologies. Formalized in the Memorandums of Understanding signed between the key stakeholders, with the support of the World Bank's EDGE Project, these efforts have sought to turn graduates into experts possessed in cutting-edge technologies.
Three-Year Strategy for the Payment Ecosystem: In April 2022, the Government of Bangladesh, in association with the 'Aspire to Innovate' program and the Better Than Cash Alliance, launched its three-year strategy to guide changes in the country's payment ecosystem and further attain Sustainable Development Goals through innovative technology. This is hoped to increase the speed of using electronic payments, financial inclusion, and socioeconomic development.
National Blockchain Strategy, March 2020: The Division of Information and Communication Technology has released a national blockchain strategy that emphasizes the vision, objectives, and roadmap needed to guide Bangladesh toward becoming a blockchain-empowered nation.
Bangladesh Bank stand (July 2021): In July 2021, the Central Bank of Bangladesh, through a media statement, declared that possessing, selling, or trading in cryptocurrency did not come under the purview of illegality. But even though the activity would not be treated as any criminal act under the present provisions, it may be considered criminal under the further scope of the Foreign Exchange Control Act 1947, Anti-Terrorism Act 2009, and Prevention of Money Laundering Act 2012.
Strict Regulations: Bangladesh Bank has maintained strict regulations for trading cryptocurrencies like Bitcoin against using virtual currencies on legal grounds, as they breach several laws associated with finance. Virtual currencies are considered illegal for performing transactions under several regulations: the Foreign Exchange Regulation Act, 1947; the Anti-Terrorism Act, 2009; and the Money Laundering Prevention Act, 2012. The central bank advised the general public against transacting in cyberspace virtual currencies to avoid a wide range of legal and financial risks.
Taxation: Cryptocurrency transactions do not have any specified taxation provision in Bangladesh. Currently, the National Board of Revenue does not have any defined or enforced taxation regulation on the returns or transactions used with cryptocurrencies, based on advisories from the central bank.
Regulatory Authorities: The Central Banking Authority in Bangladesh is the major regulatory authority actively taking steps towards cryptocurrency solutions.
Professional Bodies: The significant professional bodies controlling and monitoring the enforcement of laws, directives, and guidelines to the market are The Bangladesh Blockchain Association and the Alliance of Digital Finance Associations.
KuCoin and Revolut Partnership—February 2024: KuCoin teamed up with Revolut to enable euro-based cryptocurrency purchases using Revolut Pay. Users can now buy cryptocurrencies directly from their business accounts at Revolut, making possible transactions without any intermediate processes. Additionally, it launched mobile wallets in Singapore for direct money transfers to Bangladesh and Kenya, bypassing traditional bank details.
WellxPay Collaboration (August 2023): In a strategic move, Binance, one of the largest global cryptocurrency exchanges, has announced a potential collaboration with WellxPay, a fintech company that avails investment will, in a bid to bring increased convenience and improved security-oriented experiences to cryptocurrency traders in Bangladesh and India.
Blockchain-Based Remittance Service (September 2020): Standard Chartered Bank, in collaboration with bKash of Bangladesh and Valyou of Malaysia, introduced the first-ever blockchain-based cross-border remittance service in Bangladesh. It allows instant transfer from Malaysia, which is a very big step in the remittance industry.
Some of the critical players in the Cryptocurrency Market operating only in Bangladesh only:
• Mineable
• Keystore
• BullBear AI
• SafePaytm
• Earn Mines
• WalletBd24
• Hubtrade
• RoyalChanger
• RewardBox
• Browallted
These are leading companies in the cryptocurrency industry of Bangladesh that are the base of innovation and growth in the sector.
The cryptocurrency market in Bangladesh is embarking on a course to explode, driven by governmental strategies, developing regulations, and colossal investments that are already in play. The further evolution of the market reveals vast opportunities for innovation and economic development. Backed by regulatory bodies and key players, Bangladesh is at the forefront of the global cryptocurrency ecosystem.