Bangladesh maintains an active, enforced regulatory framework that prohibits all virtual assets and virtual currencies, which implicitly encompasses all types of stablecoins. Under FE Circular No. 24 (September 15, 2022), Bangladesh Bank prohibits all transactions in virtual assets and virtual currencies as defined by the Financial Action Task Force (FATF). While stablecoins are not explicitly mentioned by name, they meet the FATF definition of virtual assets as digital representations of value that can be digitally traded or transferred. The regulatory foundation rests on Section 5(1)(e) of the Foreign Exchange Regulation Act, 1947, treating virtual assets as violations of foreign exchange controls. The framework excludes only "digital representations of fiat currencies, securities and other financial assets, recognized by Bangladesh Bank," meaning CBDCs would fall outside the prohibition if formally recognized. Violations constitute cognizable offenses under Section 23(1) of the FER Act, 1947, subject to imprisonment and fines.
Applicable Laws:
FE Circular No. 24 (Prohibition regarding virtual assets, virtual currencies and facilitating their exchange/transfer/trading) - https://www.bb.org.bd/mediaroom/circulars/fepd/sep152022fepd24e.pdf
