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Bangladesh bans Bitcoin

Under the country's strict anti-money laundering laws, any cryptocurrency transaction is a punishable offense.

September 19, 2014

The Bangladesh Bank has warned the country's citizens that the use of Bitcoin — or for that matter, any virtual currency — is illegal and individuals found using it are subject to jail time, according to multiple reports.

"Bitcoin is not a legal tender of any country," the bank said in a statement. "Any transaction through Bitcoin or any other cryptocurrency is a punishable offense."

The bank made its announcement based on a couple of factors. Reports surfaced in the local media that Bitcoin transactions were happening on some online exchanges. Bangladesh also recently updated what are viewed as strict anti-money-laundering laws.