Risk of Crypto Trading for Bangladesh Citizens in 2025

Buying Bitcoin or trading USDT in Bangladesh isn’t just risky-it’s illegal. And yet, thousands still do it every day. Why? Because the money’s there, the apps still work, and the banks won’t help you when things go wrong. If you’re a Bangladeshi citizen thinking about getting into crypto, you need to know what you’re really signing up for-not just market swings, but jail time, frozen bank accounts, and vanished savings with no way to fight back.

It’s Against the Law-Full Stop

The Bangladesh Bank banned all cryptocurrency activity in 2017. That means buying, selling, holding, or mining Bitcoin, Ethereum, or any other digital coin is illegal under Bangladeshi law. This isn’t a gray area. It’s a hard line. The central bank says crypto threatens financial stability, enables money laundering, and fuels scams like the MTFE Ponzi scheme that wiped out millions of taka. Since then, the government has taken legal action against people caught trading. In 2025, enforcement hasn’t slowed down-it’s gotten sharper.

Here’s the twist: you can still download Binance and KuCoin from the Google Play Store in Bangladesh. You can still sign up with just an email and phone number. No ID checks. No face scans. That doesn’t mean it’s safe. It means enforcement is selective. You might get away with it for months-or you might wake up one day to a bank notice saying your account is frozen because you sent $5,000 to a crypto exchange last year. There’s no warning. No grace period. Just silence, then closure.

The Underground Market Is a Wild West

Since banks won’t touch crypto, people turned to local agents. These aren’t licensed brokers. They’re individuals-sometimes shopkeepers, sometimes students-who buy and sell Bitcoin and USDT in person or over WhatsApp, charging a 2-5% fee. You hand them cash in taka. They send you crypto. Simple, right?

Wrong.

There’s no contract. No receipt. No recourse. I spoke with a trader in Dhaka who lost 800,000 taka ($7,200) after an agent disappeared with his money. He went to the police. They told him, “You broke the law. We can’t help.” That’s not an outlier. It’s standard. The agent might be honest today. But tomorrow? He could be arrested, flee the country, or just decide to keep your cash. With no regulation, there’s zero accountability.

How You Pay for Crypto Matters-A Lot

There are two ways to fund your crypto trades in Bangladesh. The first is using a foreign currency card-usually a USD-denominated debit or credit card issued abroad. The problem? Your bank sees every transaction. If they spot a payment to Binance or Bybit, they flag it. That can trigger an investigation. You might get a call from the bank asking, “Why did you send money to a crypto exchange?” If you admit it, you’re admitting guilt. If you lie, you’re committing fraud.

The second method? Cash through agents. It’s safer from a banking perspective-but far riskier in every other way. You’re trusting a stranger with your life savings. No insurance. No dispute system. No government watchdog. And with the 2025 biometric verification rules forcing users off local exchanges, more people are moving to Telegram groups. That’s where scams multiply. Fake trading bots. Fake deposit confirmations. Fake “customer support” that steals your login details. One group in Chittagong lost over 12 million taka in a single week to a Telegram scammer posing as a crypto broker.

Even Your Taxes Are a Trap

Here’s the cruel irony: while crypto trading is illegal, the National Board of Revenue still taxes it. Under the Income Tax Ordinance of 1984, any profit from crypto is treated as income. That means if you bought Bitcoin for 500,000 taka and sold it for 800,000 taka, you owe 30% tax on the 300,000 taka gain. But here’s the catch-you can’t declare it. If you file a tax return showing crypto income, you’re handing the government proof you broke the law. If you don’t file, you risk penalties for tax evasion. You’re stuck between two crimes.

No one has been prosecuted for crypto taxes yet. But that doesn’t mean it won’t happen. The government is building digital surveillance tools. They’re cross-referencing bank flows, mobile wallet activity, and offshore crypto deposits. One day, you might get a notice: “Explain your unexplained income of 1.2 million taka.” Your only defense? “I didn’t earn that.” But if they trace it to a crypto wallet? You’re done.

You’re Cut Off From the Financial System

Imagine you’ve been trading crypto for two years. You made some money. You want to buy a house. You go to a bank for a mortgage. They ask for your bank statements. They see a pattern: monthly deposits from unknown sources, withdrawals to cash, transfers to foreign wallets. They freeze your account. They report you to the Financial Intelligence Unit. Suddenly, you can’t pay your rent. You can’t get a loan. Your salary account is blocked. Your family’s savings are tied up.

This isn’t hypothetical. It’s happened. Banks in Bangladesh are legally forbidden from dealing with anyone linked to crypto. Even if you didn’t break the law-just used a local agent-they’ll still cut you off. No explanation. No appeal. Just a letter saying your account is closed. And once you’re flagged, no other bank will touch you. You’re financially exiled.

Why Neighboring Countries Are Different

India taxes crypto at 30% and deducts 1% at source. Pakistan allows Bitcoin trading under licensed exchanges. Sri Lanka has a regulatory sandbox for crypto startups. Bangladesh? Still says “no.”

This isn’t just about policy. It’s about survival. In India, you can trade legally, pay your taxes, and keep your bank account. In Bangladesh, you can’t. That forces people into riskier, unregulated channels. It also means you can’t access the same tools as your neighbors. No regulated wallets. No insurance on holdings. No customer support when you get hacked. You’re alone.

The Future Is Getting More Dangerous

The 2025 regulatory framework didn’t ease restrictions-it tightened them. Biometric verification killed local exchanges. Mining was outlawed. Power companies report fewer blackouts because crypto farms are gone. But underground trading? It’s up 200%. Offshore platforms now process more taka from Bangladesh than ever before.

Experts call this “prohibition theater.” The government thinks it’s stopping crypto. But it’s just driving it deeper underground-where fraud, scams, and violence thrive. Law enforcement is building tools to track crypto flows. Facial recognition is being linked to mobile wallets. Banks are sharing data with intelligence units. The next step? Criminal charges for anyone with a crypto wallet balance over 100,000 taka.

And here’s the worst part: there’s no sign the ban will lift. Not in 2025. Not in 2026. The central bank says crypto is incompatible with Bangladesh’s financial system. That’s not a policy. That’s a worldview. And if you’re trading crypto, you’re on the wrong side of it.

What Happens If You Get Caught?

There’s no official list of penalties. But based on past cases, here’s what you’re facing:

• Bank account frozen indefinitely
• Investigation under the Money Laundering Prevention Act
• Asset seizure-cash, property, even vehicles bought with crypto profits
• Arrest and possible jail time (up to 7 years under Section 3 of the Money Laundering Act)
• Blacklisting from financial services for life

There are no fines. No warnings. No probation. Just prosecution. And if you’re a student, a small business owner, or a daily wage worker-you don’t have the money to hire a lawyer. You don’t have the connections to get out of it. You’re on your own.

Bottom Line: It’s Not Worth It

Crypto trading in Bangladesh isn’t like investing in stocks or mutual funds. It’s not a gamble. It’s a gamble with your freedom. The odds aren’t just stacked against you-they’re rigged. The law is clear. The risks are real. And the consequences aren’t just financial. They’re personal. They’re legal. They’re life-changing.

If you want to grow your money, there are legal ways. Fixed deposits. Mutual funds. Real estate. Even microfinance. They’re slower. They’re safer. And they won’t land you in court.

Don’t risk your future for a few extra thousand taka. The market won’t save you. The law won’t protect you. And no one will come to your rescue when it all falls apart.