Bangladesh ranks 35th in global cryptocurrency adoption despite legal restrictions

Bangladesh ranks 35th in the 2024 Global Crypto Adoption Index, according to a report by blockchain analytics firm Chainalysis, despite the country's legal restrictions on cryptocurrency use. The report, which assessed 151 countries, highlights that cryptocurrency usage remains significant in Bangladesh, even though virtual currencies are not legally recognised by the government.

Bangladesh Bank, the central authority, had issued a warning as far back as 2021, urging citizens not to engage with digital currencies such as Bitcoin, Ethereum, and other virtual currencies. The warning highlighted that these currencies were not authorised by any legal authority, raising concerns over financial stability and the potential misuse of cryptocurrencies in illicit activities. However, the country's position in the index shows that its residents continue to adopt digital currencies at a significant rate.

The Chainalysis report categorises countries based on their usage of cryptocurrencies across various services, including centralised exchanges and decentralised finance (DeFi) protocols. India, Nigeria, and Indonesia took the top three positions in the ranking, underscoring a surge in cryptocurrency adoption across Central, South Asia, and Oceania. Pakistan and Nepal also performed notably well, with Pakistan securing ninth place and Nepal landing at 71st.

Eric Jardine, head of research at Chainalysis, stated that cryptocurrency adoption is growing across many countries, including those with strict regulations like Bangladesh and India. He noted that, in some countries, the restrictions have not curbed the enthusiasm for digital assets, as evidenced by India's number one ranking despite its long-standing crypto ban. India has taken a hard line on crypto, issuing penalties to international exchanges such as Binance and KuCoin, yet it still leads the world in grassroots cryptocurrency adoption.

The Chainalysis index further revealed that seven of the top 20 countries in the global adoption ranking are from the Central and South Asia and Oceania regions.