Regulatory Alerts2022-11-10
Added
DFIM Circular Letter No. 24: Prohibition regarding dealing of virtual assets & virtual currencies and facilitating their exchange/transfer/trading
The document directs all scheduled banks, financial institutions, and foreign exchange stakeholders in Bangladesh to strictly cease any business or activities involving the dealing, buying, selling, or facilitating the exchange, transfer, or trading of virtual assets and virtual currencies. Institutions are ordered to prominently display this prohibition notice at their head offices and branches, publish it on their websites, and ensure all trainees are informed through training programs. This directive enforces the instructions previously issued in FE Circular No. 24 dated September 15, 2022, under the powers granted by Section 18(c) of the Financial Institutions Act, 1993.
Department of Supervision and Markets Bangladesh Bank Head Office Dhaka. Ref No.: D.S.M.D.F.I.M. DFIM Circular Letter No.-24 Managing Directors / Chief Executive Officers All Financial Institutions operating in Bangladesh.
Dear Sir,
Re: Prohibition regarding dealing of virtual assets (i.e., Digital Assets) and virtual currencies (i.e., Digital Currencies) and facilitating their exchange/transfer/trading (i.e., Exchange/Transfer/Trade).
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Reference is invited to the FE Circular No.-24 issued by the Foreign Exchange Policy Department on September 15, 2022, on the subject cited above.
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It has recently been observed that various foreign Digital Asset Exchanges (DAEs) are conducting activities such as dealing, buying, selling, reselling, and exchange/transfer/trading of digital currencies/digital coins, digital tokens, etc., using customer accounts and G2G accounts of certain scheduled banks operating in Bangladesh through their websites/apps. Instructions have been issued through the aforementioned circular to all scheduled banks, financial institutions, and stakeholders involved in foreign exchange transactions operating in Bangladesh to refrain from providing assistance in any business or activity related to the dealing of virtual assets (i.e., Digital Assets) and virtual currencies (i.e., Digital Currencies) and facilitating their exchange/transfer/trading (i.e., Exchange/Transfer/Trade).
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In this regard, you are instructed to make the instructions provided in FE Circular No.-24, dated 15/09/2022, issued by the Foreign Exchange Policy Department, accessible to the general public by prominently displaying them at the head offices and branches of your institutions, ensure publication on your institution's website, and take necessary measures to inform trainees about the contents of the circular in any of your training programs.
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This order is issued in the public interest under the powers conferred by Section 18(c) of the Financial Institutions Act, 1993.
Yours faithfully,
(Md. Amir Uddin) Director (DFIM) Phone: 9530178
Date: 25 Kartik 1429 10 November 2022