Bangladesh Bank Reaffirms Crypto Restrictions in New Consolidated Circular

Bangladesh Bank has reaffirmed its restrictions on cryptocurrency and virtual-currency transactions in a new consolidated circular on foreign-exchange management, issued on Thursday, 29 October 2026.

The circular, FEPD-2 Circular No. 09 from the central bank's Foreign Exchange Policy Department-2, brings existing foreign-exchange rules together in a single document. It repeals the instructions in the Guidelines for Foreign Exchange Transactions (GFET), 2018, Volume I, and subsequent circulars, except for the monthly reporting instructions in Volume II. The instructions in the new circular will remain valid for one year from the date of issue.

What happened — and what did not change

The important detail is the nature of this move. The reporting on the circular describes it as retaining and consolidating existing restrictions, not as creating a new ban from scratch. The restrictions cover the exchange, transfer and trading of virtual assets and virtual currencies, as well as the provision of services that facilitate such activities in Bangladesh.

Banks and financial institutions have been instructed to remain vigilant and to strengthen monitoring of customers' accounts to prevent cryptocurrency-related transactions through the formal banking system. The central bank has also reiterated that individuals and institutions should not facilitate such activities.

The circular was issued under Section 20(3) of the Foreign Exchange Regulation Act, 1947, the law under which Bangladesh Bank states that virtual currencies are not recognised as legal currency. Unlike conventional national currencies, they are not backed or guaranteed by a sovereign state, the central bank's position states.

This is a longstanding position, not a new one. Bangladesh Bank's restrictions on virtual currencies date back to September 2022. On 15 September that year, its Foreign Exchange Policy Department issued a circular stating that transactions intended to acquire virtual assets or virtual currencies from Bangladesh, into Bangladesh, or within the country were not permitted. A further instruction on 12 October 2022 directed banks to strengthen monitoring and take appropriate measures to prevent such transactions. The 29 October 2026 circular reiterates those earlier instructions and places them inside the consolidated foreign-exchange framework.

Why it matters

For banks, the practical effect is clarity of process rather than a change of policy: one consolidated document now sets out the foreign-exchange rules, including the crypto restrictions, alongside rules on foreign-currency accounts, banks' open foreign-exchange positions, forward contracts, swaps, interbank transactions and settlement through the Asian Clearing Union (ACU). The same circular also allows Authorised Dealer banks to offer commodity price hedging facilities to eligible importers, showing that the document is a broad consolidation, not a crypto-only measure.

For users, the message is equally clear: the formal banking channel in Bangladesh remains closed to crypto trading, exchange, transfer and facilitation, at least for the one-year validity of this circular.

Confirmed vs. still unknown

Confirmed: the circular's date (29 October 2026), its number (FEPD-2 Circular No. 09), its one-year validity, the scope of the retained restrictions, and its legal basis in the Foreign Exchange Regulation Act, 1947.

Still unknown from the reporting checked: the circular does not present a new licensing regime for crypto activity, and no policy review date beyond the circular's one-year validity has been set out in the reports. Any future change would need a separate announcement from Bangladesh Bank.

One piece of context is worth keeping separate from the legal position. Chainalysis's 2026 Geography of Cryptocurrency Report ranked Bangladesh 56th among 117 countries in grassroots cryptocurrency adoption this year. That is a measure of grassroots activity, not a statement about legality, and it does not change the restriction described above.

Source: Bangladesh Bank, FEPD-2 Circular No. 09, 29 October 2026 — https://www.bb.org.bd/mediaroom/circulars/fepd-2/oct292026fepd-209e.pdf ; The Financial Express, 29 October 2026 — https://thefinancialexpress.com.bd/economy/bb-consolidates-forex-rules-allows-importers-to-hedge-commodity-price-risks

Do you think a consolidated rulebook makes the rules clearer for banks and users, even when the policy itself has not changed? Share your thoughts below! 👇