BB urges all to abstain from transactions of virtual coins

Staff Correspondent | Published: 22:19, Dec 27,2017 | Updated: 23:02, Dec 27,2017

 
 

A file photo shows bitcoin (virtual currency) coins placed on dollar banknotes in this illustration picture, November 6, 2017. — Reuters photo

Bangladesh Bank has issued a cautionary notice asking all to refrain from transacting online-based unauthorised and illegal virtual or crypto currencies including Bitcoin.
Transaction of Bitcoin, Ethereum, Ripple, Litecoin and similar types of virtual and crypto currencies are not approved by the central bank or any other regulatory bodies in the country, central bank said in the notice issued on Sunday and posted on its web site.
The central bank said that it was informed that online-based virtual or crypto currency such as Bitcoin was being traded on different exchange platforms.
These are also not legal currencies as these are not issued by any authorised authorities of any country in the world, the notice said.
So, any financial claim against these currencies doesn’t have any recognition, the notice read.
Transactions online with pseudo partners through the currencies may cause an unintended violation of the existing money laundering and terrorist financing laws as it is not supported by any local law and regulation like Foreign Exchange Regulations Act-1947, Anti-Terrorism Act-2009, and Money Laundering Prevention Act-2012, according to the notice.
Clients of these currencies may face different types of risks including financial and legal as all the activities including payment and settlement of transactions are completed through online networks with no recognition of any central authority or regulatory authority of payment system, the central bank said.
In these contexts, Bangladesh Bank requested people to refrain from making transactions, helping others in transactions and publicising the issue to avoid possible financial and legal risks, according to the notice.
Bitcoin, the world biggest digital currency, rose 15 per cent on Tuesday, recouping about half of the losses it sustained last week, after experiencing enormous volatility in prices over last few days.
Global central banks and market regulators have been issuing repeated warnings over investment on the currency.
Bitcoin fell nearly 30 per cent at one stage on Friday to $11,159.93. On Tuesday, bitcoin was up 15 per cent at $16,030 in light trading on the Luxembourg-based Bitstamp exchange.
The digital currency had risen around twentyfold since the start of the year, climbing from less than $1,000 to as high as $19,666 on December 17 on Bitstamp and to over $20,000 on other exchanges.
Singapore’s central bank last week issued a warning against investment in cryptocurrencies, saying it considers the recent surge in prices to be driven by speculation and that the risk of a sharp fall in prices is high.

More about:

Want stories like this in your inbox?

Sign up to exclusive daily email

Advertisement

images

 

Advertisement

images