BB asks banks to stop assisting in virtual currency transaction

The Bangladesh Bank has asked banks to stop assisting in the transaction, trading and exchange of virtual currencies, virtual assets and cryptocurrency. Commercial banks were also asked to increase their monitoring to stop the transaction of virtual currency.

The central bank on Wednesday issued a notice in this regard. It said that the banking regulator has noticed that some customers of commercial banks are involved in virtual currency transactions through their bank accounts despite the prohibition on such currency in the country.

Banks will have to take the initiative to put up notices detailing the prohibition of virtual currency transactions in the visible place of banks' head offices, branches, sub-branches and agent banking outlets, the Bangladesh Bank notice added.

Earlier on September 15, Bangladesh Bank prohibited holding or trading any kind of virtual coin or cryptocurrency in the country. It has asked all to refrain from trading any kind of virtual currency, as the definition of "currency" provided by the Foreign Exchange Regulation Act, 1947, does not recognise virtual currencies.