BRPD Circular Letter No. 40: Prohibition regarding dealing of virtual assets & virtual currencies and facilitating their exchange/transfer/trading

Bangladesh Bank
Central Office
Motijheel, Dhaka-1000
Bangladesh.
Ref No.: BRPD-Regulatory & Policy Division-Banking 12 October 2022 BRPD Circular Letter No.-40 Date: ----------------- 27 Ashwin 1429 Managing Director/Chief Executive Officer All Scheduled Banks operating in Bangladesh Dear Sir, Regarding the prohibition on dealing in virtual assets (i.e., digital assets) and virtual currencies (i.e., digital currencies) and facilitating their exchange/transfer/trading.

1. Your attention is drawn to the FE Circular No.-24 issued by the Domestic Currency Policy Department on 15 September 2022, regarding the subject cited above.

2. Through the aforementioned circular, instructions were given to refrain from providing assistance to businesses associated with transactions in virtual assets (i.e., digital assets) and virtual currencies (i.e., digital currencies) and their exchange/transfer/trading, and to any kind of activity related to this. Recently, it has been observed that certain scheduled banks operating in Bangladesh are using customer bank accounts to conduct transactions, purchases, sales, resales, and exchange/transfer/trading activities of digital currencies/fiat currencies, stablecoins, etc., through various foreign Virtual Asset Service Providers (VASPs) via their websites/apps.

3. Now, in order to avoid potential financial and legal risks arising from transactions in virtual assets (i.e., digital assets) and virtual currencies (i.e., digital currencies/fiat currencies) and their exchange/transfer/trading activities, the following instructions are given:

a) Immediately stop providing assistance for any kind of activity related to transactions, purchases, sales, resales, and exchange/transfer/trading of digital currencies/fiat currencies, stablecoins, etc., through VASPs using customer bank accounts, and simultaneously, increase monitoring activities with due caution in this regard;

b) Ensure that instructions given through FE Circular No.-24/2022 are displayed on notice boards in an understandable manner for public awareness at the bank's central office, all branches, sub-branches, and agent banking outlets, and are published on the home page of the website, and take necessary measures to inform trainees about the contents of this circular in all training programs.

4. This directive is issued under the powers conferred by Section 45 of the Bank Company Act, 1991.

Yours faithfully,
(Maksuda Begum)
Director (BRPD)
Phone: 9530252