Bangladesh Bank Slams Door on Bitcoin, Citing Crime Risks and Legal Void

DHAKA, Dec. 27, 2017—Bangladesh’s central bank fired a warning shot at the crypto craze today, banning Bitcoin and other virtual currencies like Ethereum, Ripple, and Litecoin, per a Dhaka Tribune report by Golam Mowla. The Bangladesh Bank’s circular, posted online, branded Bitcoin an unauthorized, non-legal currency that flouts global standards and risks fueling money laundering and terrorism financing. The edict, which offers no enforcement details, sent Bitcoin’s price wobbling, slipping 3% to $15,500, per CoinMarketCap, as Bangladesh’s fledgling crypto scene faced a regulatory blackout.

The bank’s notice didn’t mince words: Bitcoin, lacking backing from any global regulator, violates Bangladesh’s Foreign Exchange Regulation Act of 1947, Anti-Terrorism Act of 2009, and Money Laundering Prevention Act of 2012, per the circular. “Transactions with these currencies may lead to financial and legal risks,” it warned, urging citizens to shun trading, promoting, or aiding crypto deals to avoid losses. The bank pointed to online platforms, like a “Bitcoin Exchange: Bitcoin Buy and Sell Bangladesh” Facebook page and bitcoin.com, which tout transactions via local services like Bkash, per the report, as potential traps.

Bangladesh’s move jars a crypto market riding high at $600 billion, per CoinMarketCap, with Bitcoin, Ethereum, and others losing $18 billion in hours. Unlike 2025’s $3 trillion ETF-driven juggernaut, per later reports, 2017’s market was a speculative fever dream, vulnerable to crackdowns. Local crypto enthusiasts, buzzing on @BitcoinBD forums, decried the ban as a death knell, per 2017 posts, while global traders shrugged, eyeing Bitcoin’s earlier $20,000 peak, per CoinDesk. The absence of institutional anchors, unlike 2025’s $50 billion ETF inflows, per Investing.com, left the market exposed.

The ban’s sting is sharp for three reasons. First, it isolates Bangladesh from crypto’s global surge. With Bitcoin, born in 2009 by the elusive Satoshi Nakamoto, gaining traction for peer-to-peer, encrypted transactions, per the article, the ban cuts off local innovators, contrasting Hong Kong’s 2025 licensing push, per recent reports. Second, it amplifies crime fears. The bank’s nod to money laundering, per the circular, echoes 2014’s Silk Road fallout, per prior analyses, tarring crypto’s image. Third, it exposes policy confusion. Deputy Governor SK Sur Chowdhury’s hint at a June 2018 committee to explore Bitcoin’s integration, per the report, muddies the hardline stance, per @DhakaTribune.

The ban’s ripples endure. Bitcoin crashed to $6,000 by February 2018, per CoinMarketCap, but soared to $99,381.83 by March 2025, per later reports, fueled by global adoption. Bangladesh’s 2017 clampdown, like China’s 2013 bank ban, per earlier reports, pushed crypto underground, with 2021’s mining exodus shifting hashrate, per Cambridge data. The EU’s 2025 MiCA, per cryptonews.com, and sustainable mining at 59%, per the Bitcoin Mining Council, highlight progress, but Bangladesh’s veto, blind to Bitcoin’s 170 million metric ton carbon footprint, per 2025 UN research, remains a backwater stance.

In Sum: Bangladesh Bank’s December 27, 2017, Bitcoin ban, per Dhaka Tribune, sank prices 3% to $15,500, slamming crypto as illegal and risky. A $600 billion market stumbled, foreshadowing 2025’s $3 trillion resilience, per later reports. Dhaka’s hard line, clouded by vague enforcement, stalls a digital revolution while the world races ahead.

Disclaimer: This is not financial advice. Cryptocurrency investments are highly volatile and speculative. Always conduct your own research and consult with a qualified financial advisor before making investment decisions.