Why 600,000 Bangladeshis Use Binance Despite a Complete Crypto Ban

Over 600,000 people in Bangladesh are using Binance every day-even though the government says it’s illegal. They’re not hackers. They’re not criminals. They’re students, shop owners, factory workers, and freelancers trying to get ahead in a country where the banking system doesn’t work for them. The Bangladesh Bank has banned cryptocurrency since 2014. They’ve warned people repeatedly. They’ve threatened fines and jail time. But the ban hasn’t stopped anything. It’s just pushed crypto underground, where it’s thriving.

How a Ban Became a Backdoor

Bangladesh doesn’t have a specific law that says, "Crypto is illegal." Instead, it uses old financial rules to make it dangerous. The Foreign Exchange Regulation Act of 1947 was written before anyone even heard of Bitcoin. It’s meant to stop people from moving money out of the country without permission. So when someone buys USDT on Binance, the government says: "That’s a violation." It’s not about technology. It’s about control.

The central bank doesn’t block Binance’s website or app. You can still download it from the Google Play Store. You can still sign up. You can still trade. The only thing they’ve done is say, "If you get caught, you’re breaking the law." That’s not enforcement. That’s a warning sign on a door that’s wide open.

How People Actually Buy Crypto

Most Bangladeshis don’t use credit cards to buy crypto anymore. Banks track those. If you spend $500 on Binance with your Visa, the bank flags it. Then you get a call. Then you get in trouble.

Instead, people use local agents. These are everyday guys-maybe a student who runs a small shop, or a delivery driver with a smartphone. They take Bangladeshi Taka in cash. Then they send the equivalent in USDT or Bitcoin to your Binance wallet. They charge 1-3% fee. It’s cheaper than Western Union. Faster than bank wires. And no one asks where the money came from.

These agents aren’t part of some secret network. They’re just people who figured out a gap. If you’re sending money to your sister in Malaysia, or paying a freelance designer in India, or buying a server from a U.S. company, traditional banks take days and charge 8-10% in fees. Crypto? Done in minutes. For 2%.

The Real Reason People Don’t Care About the Ban

People in Bangladesh aren’t ignoring the law because they’re rebellious. They’re ignoring it because the system failed them.

The country’s banking system is slow, expensive, and exclusionary. Millions don’t have bank accounts. Those who do can’t easily send money abroad. Remittances-money sent home by workers overseas-are worth over $20 billion a year. But the official channels are clogged. People turn to crypto because it’s the only option that works.

A 22-year-old programmer in Chittagong told me last year: "I code for clients in the U.S. They pay me in crypto. If I had to wait three weeks for a bank transfer, I’d starve. The ban doesn’t protect me. It just makes me a criminal for trying to earn a living."

What the Government Gets Wrong

The government says crypto is a risk. It’s true-it can be used for money laundering. But so can cash. So can hawala networks. So can fake invoices. The difference? Crypto leaves a trail. Cash doesn’t.

In 2020, Bangladesh released a National Blockchain Strategy. They called blockchain "essential for digital transformation." That’s the same technology behind Bitcoin. So they’re okay with the tech-but not the currency? That’s like saying you support cars but ban gas stations.

Experts like Dr. B M Mainul Hossain from Dhaka University say it plainly: "Banning is not a solution." He’s not pro-crypto. He’s pro-reality. "If people are using it anyway," he says, "why not regulate it? Track it? Tax it?"

Right now, the government doesn’t track crypto users. They don’t know who owns what. They can’t seize wallets. They can’t audit transactions. They just yell into the wind.

The Shadow Economy Is Bigger Than You Think

There’s no official number for how much crypto is traded in Bangladesh. But estimates from blockchain analytics firms put it at $1.2 billion to $1.8 billion annually. That’s more than what’s sent through official remittance channels like MoneyGram or Ria.

Binance is the biggest player-not because it’s the best, but because it’s the easiest. It doesn’t require ID to open a basic account. You can deposit Taka via agent, trade BTC, ETH, or USDT, and withdraw to a local wallet. KuCoin and OKX are also popular. All of them are accessible. All of them are banned. And all of them are used daily.

Even the Financial Intelligence Unit (FIU), the body meant to catch money laundering, hasn’t made a single public arrest for crypto-related activity since 2020. Why? Because they don’t have the tools. Or the will. Or maybe they know it’s futile.

What Happens If You Get Caught?

Technically, you could face jail time. The Money Laundering Prevention Act says so. But in reality? Nothing happens.

There are no known cases of someone being jailed just for using Binance. There are no reports of wallets being seized. No bank accounts frozen for crypto trading. The threat is real. The punishment? Almost never applied.

That’s the problem with bans without enforcement. They lose credibility. People stop fearing them. They start ignoring them.

Why This Isn’t Just About Bangladesh

This isn’t unique. Nigeria has the same problem. India restricts crypto but has 15 million users. Russia blocks exchanges but people still use them through VPNs. The pattern is clear: when a government bans something people need, they find a way.

Countries like El Salvador and the UAE saw this coming. They built legal frameworks. They taxed crypto income. They licensed exchanges. They turned a threat into an opportunity.

Bangladesh could do the same. They could let people trade crypto-but require KYC. They could tax profits. They could use blockchain to improve land records, supply chains, and voter IDs. They already have the tech. They just refuse to use it.

What’s Next?

The underground market isn’t slowing down. It’s growing. More young people are learning to trade. More agents are opening up. More apps are being downloaded. The government is losing control-not because people are clever, but because the ban is out of touch.

If nothing changes, Bangladesh will keep falling behind. Its youth will keep using crypto. Its businesses will keep bypassing banks. Its economy will keep leaking value into unregulated channels.

The real question isn’t whether crypto should be banned. It’s whether Bangladesh wants to be a country that controls its people-or one that works with them.

What You Can Learn From Bangladesh’s Crypto Underground

If you’re in a country with strict crypto rules, look at Bangladesh. You’ll see how people adapt:

• Don’t rely on banks for cross-border payments-use agents or peer-to-peer networks.
• Use USDT (Tether) instead of Bitcoin for stability and speed.
• Never link your bank account directly to a crypto exchange.
• Learn how to use a hardware wallet-even if you’re not a pro, it’s safer than leaving coins on an app.
• Understand that regulation follows adoption, not the other way around.

This isn’t about breaking the law. It’s about surviving a broken system.