Over 600,000 people in Bangladesh are using Binance every day - even though the government says it’s illegal. You won’t find any official signs saying "Crypto Allowed Here," but you’ll find plenty of young people in Dhaka, Chittagong, and Sylhet trading Bitcoin and Tether on their phones. They’re not breaking the law because they’re reckless. They’re doing it because they have no other choice.
How Can You Use Crypto If It’s Banned?
Bangladesh doesn’t have a law that says "Crypto is illegal." Instead, it uses older rules to make crypto usage risky. The Bangladesh Bank is the central bank, and since 2014, it’s warned that using Bitcoin violates the Foreign Exchange Regulation Act of 1947. That law was written for a time when people moved cash across borders in suitcases. Now, it’s being used to stop digital transactions.
Here’s the twist: the government also says blockchain technology is important. In 2020, it released a National Blockchain Strategy - meaning it sees value in the tech behind crypto, just not the currency itself. It’s like saying, "We love the engine, but we hate the car."
So how do people still trade? They don’t use bank apps. They use local agents. These agents take Bangladeshi Taka in cash, then send US dollars to someone overseas who buys crypto on Binance. The user gets their Bitcoin or USDT delivered digitally. The agent takes a small cut - maybe 1% to 3%. It’s not perfect, but it works. And it’s widespread.
Why Binance? Because It’s Easy to Find
You won’t find Binance on the official Google Play Store in Bangladesh anymore - but you still can download it. People use third-party APK files or older versions cached on their phones. Some even use VPNs, though most don’t need to. The app loads fine. The interface is in English, but users don’t care. They know how to buy, sell, and send.
There are no official ads. No government warnings pop up when you open the app. The Bangladesh Bank has issued statements, sure. But those are press releases, not blocks. The internet doesn’t care about press releases. And with over 120 million internet users in Bangladesh, even a small percentage of tech-savvy people adds up to hundreds of thousands.
The Real Reason People Are Doing It
It’s not about speculation. It’s about survival.
Many Bangladeshis send money home from jobs in Malaysia, Saudi Arabia, or the UAE. Traditional remittance services charge 8% to 12%. Crypto transfers? Sometimes under 1%. A worker in Dubai can send $500 to his family in Sylhet in 10 minutes, not 3 days. No paperwork. No middleman. No waiting.
Small businesses, especially those trading with India or Thailand, are turning to crypto to avoid banking delays. Indian rupees are hard to convert. Thai baht? Even harder. But USDT? Stable. Instant. Global.
And then there’s inflation. The Bangladeshi Taka has lost nearly 20% of its value against the US dollar since 2020. People aren’t just buying crypto for profit - they’re buying it to protect what little savings they have.
The Government’s Dilemma
The Bangladesh Bank says crypto violates anti-money laundering laws. But here’s the problem: the underground market is easier to track than the black market for dollars. Every crypto transaction leaves a digital trail. Cash? Not so much.
There’s no official crypto tax. The National Board of Revenue doesn’t track it. But if you earn money from crypto, they can still tax it under the Income Tax Ordinance of 1984 - if they find out. That’s the catch. Enforcement is patchy. Most people aren’t caught. And even if they are, penalties are rare.
Meanwhile, neighboring countries are moving forward. India bans crypto as payment but allows trading. Indonesia lets people buy crypto as an asset. Even Russia has a licensing system for exchanges. Bangladesh? Still stuck in 2014.
What Experts Are Saying
Dr. B M Mainul Hossain, a professor at Dhaka University and director of its Institute of Information Technology, doesn’t mince words: "Banning is not a solution. Sitting back and doing nothing is not the answer."
He’s not alone. Academics across Bangladesh point out that countries that embraced crypto regulation - like El Salvador and the UAE - didn’t lose control. They gained transparency. They created tax revenue. They protected consumers.
Why not do the same? Let people trade crypto - but require KYC. Let exchanges operate legally - but under supervision. Let the blockchain strategy become real. Instead, the government is chasing ghosts.
The Shadow Economy Is Already Here
There are now hundreds of local crypto agent networks in Bangladesh. Some operate out of small shops. Others run WhatsApp groups with 500 members. They don’t advertise. They don’t need to. Word spreads fast.
One student in Rajshahi told me: "My uncle works in Qatar. He sends me money in USDT. I use it to buy my textbooks online. If I used a bank, it would take two weeks and cost me $30. Now? It’s instant. And I pay $1."
That’s not a crime. That’s common sense.
What Happens Next?
The 600,000 users aren’t going away. They’re growing. And as more young people get online, more will join.
The government can keep pretending crypto doesn’t exist - or it can start talking to the people who are already using it. The blockchain strategy is a clue. It’s not a contradiction. It’s a lifeline.
Maybe the next policy won’t be a ban. Maybe it’ll be a license. Maybe it’ll be a tax. Maybe it’ll be regulation.
Or maybe it’ll be too late.
Is it really illegal to use Binance in Bangladesh?
Yes, under current regulations. The Bangladesh Bank says using cryptocurrency violates the Foreign Exchange Regulation Act of 1947 and the Money Laundering Prevention Act of 2012. There’s no specific law banning crypto ownership, but any transaction involving crypto is considered illegal because it bypasses the official banking system and foreign exchange controls.
How are people getting around the ban?
Most users rely on local agents who exchange Bangladeshi Taka for crypto like Bitcoin or USDT. These agents operate offline, often through cash transactions or mobile banking. Others download Binance or KuCoin directly via APK files or third-party app stores. VPNs are used by some, but aren’t necessary - the apps still load on most networks.
Can the government track crypto users?
It’s hard. While banks can see when someone sends money overseas, they can’t see if it was used to buy crypto unless they get access to exchange records - which they don’t have. Crypto transactions themselves are public on the blockchain, but user identities aren’t tied to them unless KYC is used. Most Bangladeshi users avoid KYC on Binance, making tracking nearly impossible.
Why doesn’t Bangladesh just legalize crypto?
The government fears losing control over foreign exchange, money laundering, and tax revenue. But experts argue that regulation - not prohibition - would give them more control. Legal crypto exchanges could be required to report users, collect taxes, and verify identities. That’s more effective than a ban that only pushes activity underground.
Is there any risk for users?
Yes. If caught, users could face fines or legal action under money laundering or foreign exchange laws. But in practice, enforcement is rare. No public cases of individuals being prosecuted for personal crypto use have been reported. The bigger risk is losing money - scams are common, and there’s no legal recourse if your agent disappears.
What’s the difference between blockchain and cryptocurrency in Bangladesh’s policy?
The government supports blockchain as a tool for digital government services, supply chain tracking, and public records. But it refuses to recognize cryptocurrencies like Bitcoin or Ethereum as legal assets. This creates a strange split: the tech is welcomed, but the currency built on it is banned. Experts say this inconsistency makes regulation harder, not easier.
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