The central bank of Bangladesh released a stern warning yesterday directed to Bitcoin traders.
Under the country’s anti-money laundering laws, they mentioned anyone trading Bitcoin could face jail time of up to 12 years.
The notice, issued by the Bangladesh Bank (BB), declares that transactions in Bitcoin are illegal, since they are done in a currency not recognized by the bank or the Bangladesh government.
This effectively makes Bitcoin illegal in the impoverished nation. The news comes just a couple short weeks after the Bitcoin Foundation Bangladesh was formed, in order to help encourage the growth of a Bitcoin industry in that country.
So far, the Bitcoin Foundation Bangladesh has not released a statement on this issue.
Banning Bitcoin
Bangladesh isn’t the first Asian nation to ban Bitcoin.
Thailand seemed to have done so in July of last year, though they later softened their stance to claim it was not illegal but frowned upon.
China, of course, has been a source of great instability for Bitcoin as well. One day their government has banned it, the next it’s totally legal.
However, the logistics of banning a digital currency are nearly impossible to enforce on a wide scale, on the same level as banning p2p file sharing.
Here’s hoping the Bangladesh Bank comes to its senses.
Bangladesh Bank Effectively Bans Bitcoin
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