Bangladesh Have Bitcoin Wallets: Uncovering Interesting Mysteries
In Bangladesh, Bitcoin is not recognized as legal tender. However, you can use Bitcoin wallets to trade and transfer your assets. Let’s explore the topic with Coincu in this article and find the answer to the question: Does Bangladesh have Bitcoin wallets?
Overview of Cryptocurrency Adoption in Bangladesh
Brief History of Bitcoin in Bangladesh
Bangladesh is one of only six countries in the entire world hostile to Bitcoin. The central bank first issued a caution against the use of Bitcoin in 2014, stating that such transactions in cryptocurrencies could contravene the Foreign Exchange Regulation Act, 1947, and the Money Laundering Prevention Act, 2012.
Reiterating, the bank had said no cryptocurrency is either legal tender issued by any country or approved by any central payment system, hence using it poses financial risks for users.
Due to the popularity of Bitcoin in different parts of the world, Bangladesh Bank issued another warning on December 24, 2017. This revised notice reminded the readers of the previous warning about existing laws and added the Anti-Terrorism Act of 2009 to the list. It called upon the citizens to refrain from transactions related to virtual currencies like Bitcoin, Ethereum, Ripple, and Litecoin to reduce the potential financial and legal risks.
While issuing these warnings, Bangladesh Bank has not entirely prohibited Bitcoin or termed its use a criminal offence. These cautionary notices said the use of cryptocurrency can be penalized if it comes under any prevailing laws on foreign exchange, money laundering, or terrorism financing. This position taken by Bangladesh Bank has further implied that though Bitcoin itself is not illegal in Bangladesh, its use in illegal activities could result in punishment, just as with traditional currency.
Read more: Bitcoin Price Prediction For 2024, 2025, 2026 and 2030: Super Crypto Bull Run
Is Bitcoin Legal in Bangladesh in 2024?
Bangladesh Bank’s announcement that Bitcoin is not a legal tender joins the chorus of most countries. However, non-recognition as legal tender does not necessarily make Bitcoin illegal. The legal validity of this Bangladesh Bank “warning” regarding Bitcoin is not clear and, to that extent, can be rendered illegitimate.
Various provisions providing for punishments on trading, importing, or exporting currencies without prior permission are stated in the Foreign Exchange Regulation Act and the Money Laundering Prevention Act. These Acts further provide punishment for illegal money laundering where foreign currency is used.
According to Section 2(b) of the Foreign Exchange Regulation Act, “currency” includes coins, banknotes, money orders, cheques, and instruments of a similar nature. It empowers Bangladesh Bank to add more items to this definition through notification. However, till today, no such notification has been issued regarding cryptocurrencies like Bitcoin.
Despite the name, Bitcoin would not fall within the legal meaning of “currency” in the present scenario under Section 2(b). The stipulation under Section 2(b)(ii) is that it needs to be issued by the Bangladesh Bank through a notice as a currency. Without issuing such notice, Bitcoin and other cryptocurrencies would most likely remain outside the foreign currency regulations. In effect, therefore, the criminal liability for trading in foreign currency without permission would not apply in explicit terms to Bitcoin.
Similarly, the Money Laundering Prevention Act defines foreign currency per the Foreign Exchange Regulation Act. As Bitcoin does not fall into that definition, neither it falls in the purview of the money laundering laws. The warnings have mentioned the Anti-Terrorism Act, but again, this law also does not reference cryptocurrencies.
Despite these regulatory grey areas, Bangladeshis authorities have been going hammer and tongs after Bitcoin traders and miners. It is, however, unclear on what legal basis the crackdown is based, since none of the above-mentioned legislation criminalizes or prohibits the use of Bitcoin.
Does Bangladesh Have Bitcoin Wallets?
Because wallets are unrestricted and private, anyone can access them anywhere, without being limited by where they reside. Although Bangladesh does not have its own Bitcoin wallets, most wallets are available in Bangladesh.
What is a Bitcoin Wallet?
A Bitcoin wallet is a device, program, or electronic means of facilitating the transfer and receipt of digital assets that work like money. Examples include Bitcoin, Ethereum, and XRP cryptocurrencies. Similar to an online bank account, this system would lock your funds with a private key, essentially a password that allows only the owner and any other person he permits access to the wallet.
These wallets come in handy for storing, sending, and receiving digital coins or tokens. While some wallets allow only basic transactions, other wallets can be more advanced and provide users with access to blockchain-based decentralized applications. Further apps enable users to lend their cryptocurrencies to somebody else to make interest on their assets.
Read more: Top 5 Best DeFi Wallets You Should Use
Types of Bitcoin Wallets
Bitcoin Wallets Exchange
Bitcoin wallets exchange, also known as custodial wallets, is provided by centralized cryptocurrency exchanges. They allow users to get permission for their Bitcoin but do not give them total ownership since the private keys are in the hands of the exchange. Users have access and can manage their accounts but do not really fully control their Bitcoin holdings.
Software Bitcoin Wallets Software
These wallets are desktop applications, mobile applications, or browser-integrated applications that are installed on desktop computers and mobile phones. Using the wallets, users can store, perform transactions, and view their Bitcoin balance. They come in the following forms:
Bitcoin wallets are computer programs installed on desktop or laptop computers. They are less secure because private keys are directly stored on the device, though they offer convenience. The vulnerability they face relates to their possible, potential, or prospected exposure to online threats like spyware and malware.
Bitcoin wallets are applications installed on mobile devices. They provide users with the convenience of managing their Bitcoin accounts anywhere, but they are vulnerable to malware and mobile device targeting.
These are browser extension wallets that come integrated into a web browser – Google Chrome or Microsoft Edge. Although they have some convenience factor, relating to online transactions, they connect directly to the internet and, therefore, pose vulnerability in terms of being compromised and hacked.
Bitcoin Paper Wallets
Paper Bitcoin wallets are more traditional, physical approaches to storing Bitcoin. They are actually private keys that are printed out often in the form of QR codes. Paper wallets store keys offline and are thus highly secure, but they are at risk of getting damaged or lost. Such shortcomings practically make them less common today.
Cold Wallets
Cold wallets are those kinds of wallets that come in physical forms, such as USB devices, not connected to the internet. Users doing transactions with them need to actually attach the cold wallet with a computer or any other electronic medium. This method offers highly secured options by keeping the private keys offline, but it requires additional password management used in connecting. In addition, losing these passwords could cause a loss of access to the Bitcoin stored on the device.
How Bitcoin Wallets work
A Bitcoin wallet is a little different from a traditional wallet. Since Bitcoin rests on a blockchain ledger, using a Bitcoin wallet requires more than a simple action.
Similar to how e-mail works: You log in with a password, insert the recipient’s address and voila-click send. The same applies to sending Bitcoin: you use a private key to gain access to your wallet, and then you need a recipient’s Bitcoin wallet address to which you will send the cryptocurrency.
First and foremost, your wallet key is your most valuable treasure to be kept safe. When it falls into the wrong hands, they can easily hijack your wallet, and even worse, transfer your Bitcoin into their account. And if you misplace it yourself, then you may not see your funds again. Most cryptocurrency wallets are decentralized and encrypted, with absolutely no support system to help in key recovery or password reset.
Best Bitcoin Wallets Used in Bangladesh
1. Trust Wallet
Trust Wallet is an open-source, decentralized cryptocurrency wallet that was founded in 2017 by Viktor Radchenko and Kevin Moen, allowing users to store different digital assets. It provides a secure, open-source, mobile wallet for Ethereum and ERC20 tokens, among other popular cryptocurrencies such as Bitcoin, Litecoin, and Dogecoin.
Trust Wallet excels when it comes to compatibility, as it currently hosts more than 10 million assets on over 100 blockchains. This wallet provides a wide range of functions for the easy purchase, sale, swapping, and transfer of cryptocurrencies. Additionally, Trust Wallet can offer its users the generation of crypto with various integrated services included in it.
The wallet is available on iOS, Android, and desktop browsers, combining security with the friendliest of designs so that one could enjoy seamless experiences while managing and transacting in this world of cryptocurrency.
Read more: Trust Wallet Scams: How to Avoid Losing Assets When Using the Wallet
2. Exodus Wallet
Exodus is a multi-purpose crypto wallet hosting over 50 blockchain networks for the management of a wide variety of tokens from a single interface. Such multi-chain functionality means a user will be able to aggregate his digital assets all in one place.
With a design philosophy focusing on simplicity and ease of access, Exodus holds an intuitive interface perfect for blockchain beginners. It also allows users to buy a cryptocurrency with traditional currencies through fiat on-ramp or in-app swapping for ease of token exchange.
Exodus Wallet also comes in different forms: mobile applications for iOS and Android, browser extension, and desktop client. Its mobile and desktop versions were quite efficient for wallet management, token swapping, and buying cryptocurrencies. As for interaction with web3-enabled sites and dapps, one needed to use either the extension or connect using WalletConnect on a mobile device.
Read more: Exodus Wallet Review: Great Crypto Wallet For Every Trader
3. Electrum
Electrum is one of the oldest Bitcoin wallets. It is still a popular service that comes free of charge. Electrum targets Bitcoin maximalists and people keen on self-custody.
The wallet is lightweight and user-friendly, accompanied by its accessibility via desktop and Android mobile platforms. One of the main features overhyped by Electrum is the attention to user privacy and security. Unlike some of the wallets in the market, Electrum never keeps private keys on servers but has them locally stored on users’ devices.
Electrum further provides security by encrypting both private keys and the seed phrase. It asks for the user’s password to decrypt the wallet file, in order to keep their sensitive information secure.
4. Guarda Wallet
Guarda Wallet is a multi-functional safe multi-asset cryptocurrency wallet that was launched in 2017 for storing, swapping, buying, earning, and spending digital assets with the ability to accommodate different cryptocurrencies like Bitcoin and Ethereum. It has been developed by a team of experienced blockchain specialists.
Among all other wallets, Guarda Wallet is outstanding with its non-custodial approach, which means the full control over funds is left entirely to the users. This way, the asset independence of cryptocurrency enthusiasts will be guaranteed to a great extent.
Why Are Bangladeshi Bitcoin Wallets Important?
Bangladesh has taken a strong stance in the case of Bitcoin and any other cryptocurrencies by banning their use in the country altogether. Yet despite this more restrictive policy, the public blockchain domain continues to be recognized as a highly disrupting channel.
The Bitcoin wallet is a core element within the modern conceptualization of cryptocurrency. It provides users with secure storing, sending, and receiving of Bitcoins. It avails a safe space for users to handle their digital assets.
Bitcoin wallets, on the other hand, are one of the major components of the crypto world. Even though there are stringent laws in place against using Bitcoin or any other cryptocurrencies in Bangladesh, for example, it does provide a required gateway toward holding cryptocurrency for the citizens of those countries where the laws are not so strict.
Is there a Bitcoin ATM in Bangladesh?
There are currently no Bitcoin ATMs in Bangladesh due to the country’s restrictive regulations.
Conclusion
The Bangladesh Bank does not recognize Bitcoin as a legal tender. However, ownership and transactions of Bitcoin and other digital currencies are not criminalized. Therefore, choosing Bitcoin wallets may be a solution for such limitations. Hopefully, this article has helped you gain more useful information for transactions if you are a citizen of Bangladesh.
FAQs About Bitcoin Wallets in Bangladesh
Is it legal to use a Bitcoin wallet in Bangladesh?
In Bangladesh, there is no prohibition on digital asset ownership using wallets, so using a Bitcoin wallet in Bangladesh is not illegal.
Which Bitcoin wallet can I use in Bangladesh?
There are many choices, we have recommended 4 wallets Trust Wallet, Exodus Wallet, Electrum and Guarda Wallet for your reference.
How can I buy Bitcoin in Bangladesh?
Some popular exchanges that support Bangladeshi users include international platforms like Binance and Coinbase. You can trade Bitcoin on these exchanges.
Can I mine Bitcoin in Bangladesh?
While the use of Bitcoin is not criminalized, the Bangladesh Bank has not endorsed it as a legal tender, and there is no clear legal framework supporting cryptocurrency mining.
| DISCLAIMER: The information on this website is provided as general market commentary and does not constitute investment advice. We encourage you to do your own research before investing. |
Author
Knowledge, Highlights
Bangladesh Have Bitcoin Wallets: Uncovering Interesting Mysteries
In Bangladesh, Bitcoin is not recognized as legal tender. However, you can use Bitcoin wallets to trade and transfer your assets. Let’s explore the topic with Coincu in this article and find the answer to the question: Does Bangladesh have Bitcoin wallets?
Overview of Cryptocurrency Adoption in Bangladesh
Brief History of Bitcoin in Bangladesh
Bangladesh is one of only six countries in the entire world hostile to Bitcoin. The central bank first issued a caution against the use of Bitcoin in 2014, stating that such transactions in cryptocurrencies could contravene the Foreign Exchange Regulation Act, 1947, and the Money Laundering Prevention Act, 2012.
Reiterating, the bank had said no cryptocurrency is either legal tender issued by any country or approved by any central payment system, hence using it poses financial risks for users.
Due to the popularity of Bitcoin in different parts of the world, Bangladesh Bank issued another warning on December 24, 2017. This revised notice reminded the readers of the previous warning about existing laws and added the Anti-Terrorism Act of 2009 to the list. It called upon the citizens to refrain from transactions related to virtual currencies like Bitcoin, Ethereum, Ripple, and Litecoin to reduce the potential financial and legal risks.
While issuing these warnings, Bangladesh Bank has not entirely prohibited Bitcoin or termed its use a criminal offence. These cautionary notices said the use of cryptocurrency can be penalized if it comes under any prevailing laws on foreign exchange, money laundering, or terrorism financing. This position taken by Bangladesh Bank has further implied that though Bitcoin itself is not illegal in Bangladesh, its use in illegal activities could result in punishment, just as with traditional currency.
Read more: Bitcoin Price Prediction For 2024, 2025, 2026 and 2030: Super Crypto Bull Run
Is Bitcoin Legal in Bangladesh in 2024?
Bangladesh Bank’s announcement that Bitcoin is not a legal tender joins the chorus of most countries. However, non-recognition as legal tender does not necessarily make Bitcoin illegal. The legal validity of this Bangladesh Bank “warning” regarding Bitcoin is not clear and, to that extent, can be rendered illegitimate.
Various provisions providing for punishments on trading, importing, or exporting currencies without prior permission are stated in the Foreign Exchange Regulation Act and the Money Laundering Prevention Act. These Acts further provide punishment for illegal money laundering where foreign currency is used.
According to Section 2(b) of the Foreign Exchange Regulation Act, “currency” includes coins, banknotes, money orders, cheques, and instruments of a similar nature. It empowers Bangladesh Bank to add more items to this definition through notification. However, till today, no such notification has been issued regarding cryptocurrencies like Bitcoin.
Despite the name, Bitcoin would not fall within the legal meaning of “currency” in the present scenario under Section 2(b). The stipulation under Section 2(b)(ii) is that it needs to be issued by the Bangladesh Bank through a notice as a currency. Without issuing such notice, Bitcoin and other cryptocurrencies would most likely remain outside the foreign currency regulations. In effect, therefore, the criminal liability for trading in foreign currency without permission would not apply in explicit terms to Bitcoin.
Similarly, the Money Laundering Prevention Act defines foreign currency per the Foreign Exchange Regulation Act. As Bitcoin does not fall into that definition, neither it falls in the purview of the money laundering laws. The warnings have mentioned the Anti-Terrorism Act, but again, this law also does not reference cryptocurrencies.
Despite these regulatory grey areas, Bangladeshis authorities have been going hammer and tongs after Bitcoin traders and miners. It is, however, unclear on what legal basis the crackdown is based, since none of the above-mentioned legislation criminalizes or prohibits the use of Bitcoin.
Does Bangladesh Have Bitcoin Wallets?
Because wallets are unrestricted and private, anyone can access them anywhere, without being limited by where they reside. Although Bangladesh does not have its own Bitcoin wallets, most wallets are available in Bangladesh.
What is a Bitcoin Wallet?
A Bitcoin wallet is a device, program, or electronic means of facilitating the transfer and receipt of digital assets that work like money. Examples include Bitcoin, Ethereum, and XRP cryptocurrencies. Similar to an online bank account, this system would lock your funds with a private key, essentially a password that allows only the owner and any other person he permits access to the wallet.
These wallets come in handy for storing, sending, and receiving digital coins or tokens. While some wallets allow only basic transactions, other wallets can be more advanced and provide users with access to blockchain-based decentralized applications. Further apps enable users to lend their cryptocurrencies to somebody else to make interest on their assets.
Read more: Top 5 Best DeFi Wallets You Should Use
Types of Bitcoin Wallets
Bitcoin Wallets Exchange
Bitcoin wallets exchange, also known as custodial wallets, is provided by centralized cryptocurrency exchanges. They allow users to get permission for their Bitcoin but do not give them total ownership since the private keys are in the hands of the exchange. Users have access and can manage their accounts but do not really fully control their Bitcoin holdings.
Software Bitcoin Wallets Software
These wallets are desktop applications, mobile applications, or browser-integrated applications that are installed on desktop computers and mobile phones. Using the wallets, users can store, perform transactions, and view their Bitcoin balance. They come in the following forms:
Bitcoin wallets are computer programs installed on desktop or laptop computers. They are less secure because private keys are directly stored on the device, though they offer convenience. The vulnerability they face relates to their possible, potential, or prospected exposure to online threats like spyware and malware.
Bitcoin wallets are applications installed on mobile devices. They provide users with the convenience of managing their Bitcoin accounts anywhere, but they are vulnerable to malware and mobile device targeting.
These are browser extension wallets that come integrated into a web browser – Google Chrome or Microsoft Edge. Although they have some convenience factor, relating to online transactions, they connect directly to the internet and, therefore, pose vulnerability in terms of being compromised and hacked.
Bitcoin Paper Wallets
Paper Bitcoin wallets are more traditional, physical approaches to storing Bitcoin. They are actually private keys that are printed out often in the form of QR codes. Paper wallets store keys offline and are thus highly secure, but they are at risk of getting damaged or lost. Such shortcomings practically make them less common today.
Cold Wallets
Cold wallets are those kinds of wallets that come in physical forms, such as USB devices, not connected to the internet. Users doing transactions with them need to actually attach the cold wallet with a computer or any other electronic medium. This method offers highly secured options by keeping the private keys offline, but it requires additional password management used in connecting. In addition, losing these passwords could cause a loss of access to the Bitcoin stored on the device.
How Bitcoin Wallets work
A Bitcoin wallet is a little different from a traditional wallet. Since Bitcoin rests on a blockchain ledger, using a Bitcoin wallet requires more than a simple action.
Similar to how e-mail works: You log in with a password, insert the recipient’s address and voila-click send. The same applies to sending Bitcoin: you use a private key to gain access to your wallet, and then you need a recipient’s Bitcoin wallet address to which you will send the cryptocurrency.
First and foremost, your wallet key is your most valuable treasure to be kept safe. When it falls into the wrong hands, they can easily hijack your wallet, and even worse, transfer your Bitcoin into their account. And if you misplace it yourself, then you may not see your funds again. Most cryptocurrency wallets are decentralized and encrypted, with absolutely no support system to help in key recovery or password reset.
Best Bitcoin Wallets Used in Bangladesh
1. Trust Wallet
Trust Wallet is an open-source, decentralized cryptocurrency wallet that was founded in 2017 by Viktor Radchenko and Kevin Moen, allowing users to store different digital assets. It provides a secure, open-source, mobile wallet for Ethereum and ERC20 tokens, among other popular cryptocurrencies such as Bitcoin, Litecoin, and Dogecoin.
Trust Wallet excels when it comes to compatibility, as it currently hosts more than 10 million assets on over 100 blockchains. This wallet provides a wide range of functions for the easy purchase, sale, swapping, and transfer of cryptocurrencies. Additionally, Trust Wallet can offer its users the generation of crypto with various integrated services included in it.
The wallet is available on iOS, Android, and desktop browsers, combining security with the friendliest of designs so that one could enjoy seamless experiences while managing and transacting in this world of cryptocurrency.
Read more: Trust Wallet Scams: How to Avoid Losing Assets When Using the Wallet
2. Exodus Wallet
Exodus is a multi-purpose crypto wallet hosting over 50 blockchain networks for the management of a wide variety of tokens from a single interface. Such multi-chain functionality means a user will be able to aggregate his digital assets all in one place.
With a design philosophy focusing on simplicity and ease of access, Exodus holds an intuitive interface perfect for blockchain beginners. It also allows users to buy a cryptocurrency with traditional currencies through fiat on-ramp or in-app swapping for ease of token exchange.
Exodus Wallet also comes in different forms: mobile applications for iOS and Android, browser extension, and desktop client. Its mobile and desktop versions were quite efficient for wallet management, token swapping, and buying cryptocurrencies. As for interaction with web3-enabled sites and dapps, one needed to use either the extension or connect using WalletConnect on a mobile device.
Read more: Exodus Wallet Review: Great Crypto Wallet For Every Trader
3. Electrum
Electrum is one of the oldest Bitcoin wallets. It is still a popular service that comes free of charge. Electrum targets Bitcoin maximalists and people keen on self-custody.
The wallet is lightweight and user-friendly, accompanied by its accessibility via desktop and Android mobile platforms. One of the main features overhyped by Electrum is the attention to user privacy and security. Unlike some of the wallets in the market, Electrum never keeps private keys on servers but has them locally stored on users’ devices.
Electrum further provides security by encrypting both private keys and the seed phrase. It asks for the user’s password to decrypt the wallet file, in order to keep their sensitive information secure.
4. Guarda Wallet
Guarda Wallet is a multi-functional safe multi-asset cryptocurrency wallet that was launched in 2017 for storing, swapping, buying, earning, and spending digital assets with the ability to accommodate different cryptocurrencies like Bitcoin and Ethereum. It has been developed by a team of experienced blockchain specialists.
Among all other wallets, Guarda Wallet is outstanding with its non-custodial approach, which means the full control over funds is left entirely to the users. This way, the asset independence of cryptocurrency enthusiasts will be guaranteed to a great extent.
Why Are Bangladeshi Bitcoin Wallets Important?
Bangladesh has taken a strong stance in the case of Bitcoin and any other cryptocurrencies by banning their use in the country altogether. Yet despite this more restrictive policy, the public blockchain domain continues to be recognized as a highly disrupting channel.
The Bitcoin wallet is a core element within the modern conceptualization of cryptocurrency. It provides users with secure storing, sending, and receiving of Bitcoins. It avails a safe space for users to handle their digital assets.
Bitcoin wallets, on the other hand, are one of the major components of the crypto world. Even though there are stringent laws in place against using Bitcoin or any other cryptocurrencies in Bangladesh, for example, it does provide a required gateway toward holding cryptocurrency for the citizens of those countries where the laws are not so strict.
Is there a Bitcoin ATM in Bangladesh?
There are currently no Bitcoin ATMs in Bangladesh due to the country’s restrictive regulations.
Conclusion
The Bangladesh Bank does not recognize Bitcoin as a legal tender. However, ownership and transactions of Bitcoin and other digital currencies are not criminalized. Therefore, choosing Bitcoin wallets may be a solution for such limitations. Hopefully, this article has helped you gain more useful information for transactions if you are a citizen of Bangladesh.
FAQs About Bitcoin Wallets in Bangladesh
Is it legal to use a Bitcoin wallet in Bangladesh?
In Bangladesh, there is no prohibition on digital asset ownership using wallets, so using a Bitcoin wallet in Bangladesh is not illegal.
Which Bitcoin wallet can I use in Bangladesh?
There are many choices, we have recommended 4 wallets Trust Wallet, Exodus Wallet, Electrum and Guarda Wallet for your reference.
How can I buy Bitcoin in Bangladesh?
Some popular exchanges that support Bangladeshi users include international platforms like Binance and Coinbase. You can trade Bitcoin on these exchanges.
Can I mine Bitcoin in Bangladesh?
While the use of Bitcoin is not criminalized, the Bangladesh Bank has not endorsed it as a legal tender, and there is no clear legal framework supporting cryptocurrency mining.
| DISCLAIMER: The information on this website is provided as general market commentary and does not constitute investment advice. We encourage you to do your own research before investing. |
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