P2P Crypto Trading in Bangladesh: How It Works Despite the Ban

It’s 2025, and in Dhaka, a 24-year-old student named Arif sends $500 to his sister in Malaysia every month. He doesn’t use Western Union. He doesn’t go to a bank. He opens Binance, finds a seller, pays via bKash, and gets USDT in under 10 minutes. The transaction costs him $5 - less than half what a traditional remittance service charges. But if the police knock on his door, he could be arrested. That’s the reality of P2P crypto trading in Bangladesh: illegal, widespread, and deeply practical.

Why People Use Crypto When It’s Banned

The Bangladeshi government has banned cryptocurrency since 2014. Bangladesh Bank calls it a violation of the Foreign Exchange Regulation Act. They say it threatens financial stability. But here’s the thing: people are still doing it. Why? Because the system they’re trying to avoid is broken.

Bangladesh received $21.5 billion in remittances in 2022. Most of that comes from workers in the Middle East, Malaysia, and Saudi Arabia. Sending that money home through banks or agents like Western Union or MoneyGram costs 3% to 8%. That’s hundreds of millions in fees every year. Crypto cuts that to 0.5% to 2%. For families relying on that money, it’s not a luxury - it’s survival.

And it’s not just remittances. Young people in Dhaka and Chittagong use crypto to buy digital goods, access global marketplaces, or hold value as the taka weakens. Inflation hit 9.8% in 2024. Crypto isn’t perfect, but it’s faster and more reliable than the local banking system.

How P2P Trading Actually Works

There are three main ways people trade crypto in Bangladesh - and only one of them is legal in practice.

The most common method is through centralized exchanges with P2P platforms, especially Binance. About 68% of traders use it. Here’s how it works:

1. You create a Binance account and complete KYC (they ask for your ID, but enforcement is patchy).
2. You go to the P2P section and search for sellers offering USDT in Bangladeshi taka.
3. You pick a seller with high ratings and choose bKash or Nagad as your payment method.
4. You send the taka via the mobile app - usually under 5 minutes.
5. Binance holds the crypto in escrow until you confirm payment.
6. They release the USDT to your wallet.

The whole thing takes 8 to 12 minutes on average. Binance’s escrow system is the reason this works. If a seller doesn’t release the crypto after you pay, you file a dispute. Binance reviews screenshots of your bKash receipt and usually sides with you. In 2024, 99.98% of disputes on Binance’s P2P platform in Bangladesh were resolved in favor of the buyer.

The second method is through informal agents - people who act as human ATMs. You find someone on Facebook or Telegram who says, “I’ll give you USDT if you send me taka via Nagad.” You meet them in person, send the money, and they hand you a QR code to claim your crypto. These agents charge 4% to 8% - more than Binance - but they offer cash-like convenience. There are over 12,000 registered agents in Dhaka alone. But here’s the catch: if they disappear after you pay, you have no recourse. No escrow. No support. Just your word against theirs.

The third method is decentralized exchanges (DEX), like PancakeSwap. You use MetaMask, connect it to Binance Smart Chain, swap your taka for USDT via a peer-to-peer swap. This is anonymous. No KYC. No middleman. But it’s hard. You need to understand gas fees, wallet addresses, and blockchain networks. Only 8% of traders use this. And if you send crypto to the wrong address? It’s gone forever.

Payment Methods: bKash and Nagad Are the Backbone

You can’t trade crypto in Bangladesh without mobile money. That’s the truth.

bKash has 72.5 million active users. Nagad has 45 million. Together, they handle 90% of all crypto payments. That’s why Binance lists them as top payment options.

Here’s what you need to know:

• Always use “Send Money” - never “Cash In” - on bKash. Cash In is flagged as a deposit and often gets blocked.
• Nagad has a ৳50,000 limit per transaction. If you need to send more, you have to do multiple transfers - and that triggers fraud alerts.
• Most sellers only accept payments between 9 AM and 11 PM. Outside those hours, transactions stall.
• During Eid, mobile money systems crash. Transactions that take 5 minutes on a Tuesday take 47 minutes on Eid day.

The system works because these apps are everywhere. Even rickshaw drivers use bKash. But that also makes them easy targets for fraud. In 2023, 214 fraud cases were reported, totaling ৳1.2 billion ($11 million). Most involved fake agents who reversed payments after receiving crypto.

The Risks: Arrests, Scams, and Frozen Accounts

Let’s be clear: trading crypto in Bangladesh is risky.

In 2022, 17 traders in Dhaka were arrested under Section 411 of the Penal Code - “possessing stolen property.” Their crime? Owning Bitcoin. No evidence of fraud. No theft. Just holding crypto. The court didn’t charge them with violating foreign exchange law. They charged them with possessing something the state says doesn’t exist.

Banks are also watching. In Q4 2024, 1,842 accounts were frozen because they received payments from mobile financial services linked to crypto trading. If your bKash account shows 10 payments of ৳50,000 in a week, expect a call from your bank. They’ll ask: “Why are you sending so much money? Who are you paying?”

And the government isn’t backing down. Between October 2024 and January 2025, Bangladesh Bank conducted 87 raids on crypto trading hubs. They seized laptops, phones, and servers worth ৳32 million ($295,000). They didn’t arrest everyone. But they made it clear: this is not tolerated.

The biggest risk? No protection. If you get scammed on a DEX, you’re out of luck. If an agent runs off with your money, there’s no police unit for crypto fraud. Even Binance can’t help if you pay an agent outside their platform.

Who’s Trading? And Why It’s Growing

The typical crypto trader in Bangladesh is under 35. 68% are between 18 and 35. 83% live in Dhaka, Chittagong, or Sylhet. 54% are overseas workers sending money home.

The market is growing fast. P2P trading volume hit $417 million in Q1 2025 - up 38% from last year. Most trades are in USDT because it’s stable. If the taka drops 10% in a week, you can hold USDT and not lose value.

Binance dominates with 61% of the market. Bybit comes second with 19%, mostly used by traders who want leverage (50x is popular). KuCoin has the most altcoins - over 700 - but fewer users.

Why is it growing? Because people have no other option. Banks won’t let them send money abroad easily. Mobile money is fast. Crypto is cheaper. And the internet is everywhere.

What’s Next? The CBDC and the Future

The government isn’t ignoring this. They’re building their own digital currency - the Bangladeshi Central Bank Digital Currency (CBDC). It’s in pilot phase, testing with 500,000 users across 12 districts. If it works, it could replace crypto.

But here’s the irony: the CBDC will look a lot like crypto. It’s blockchain-based. It’s digital. It’s peer-to-peer. The only difference? The government controls it.

A 12-member Crypto Asset Task Force was formed in February 2025, led by Bangladesh Bank’s Deputy Governor. They’re supposed to submit recommendations by December 2025. Some experts think they’ll legalize P2P trading under strict rules. Others say they’ll double down on the ban.

One thing is certain: the demand won’t disappear. If the government shuts down Binance P2P, people will find another way. They’ve done it before. They’ll do it again.

How to Get Started - Safely

If you’re thinking about trying P2P crypto trading in Bangladesh, here’s how to do it without getting burned:

1. Start with Binance. It’s the most reliable.
2. Use bKash or Nagad - never bank transfers. Banks monitor those.
3. Only trade with sellers who have 98%+ positive feedback and at least 1,000 completed trades.
4. Never pay outside the Binance P2P platform. If someone asks you to send taka first and they’ll send crypto later - walk away.
5. Keep your trade history. Take screenshots of every payment and every message.
6. Use two-factor authentication. 98% of traders do. You should too.
7. Don’t store large amounts on the exchange. Move your USDT to a personal wallet like Trust Wallet or MetaMask.

Join the ‘Crypto BD Guide’ Telegram channel. It has 47,300 members. They update daily with lists of bad agents, payment tips, and platform outages.

Final Thought: A System That Works - But at a Cost

P2P crypto trading in Bangladesh isn’t a trend. It’s a workaround. It’s what happens when people are locked out of the financial system and find a better way.

It’s fast. It’s cheap. It’s effective. But it’s also dangerous. There’s no safety net. No insurance. No legal protection.

The government can shut down exchanges. They can arrest traders. They can freeze accounts. But they can’t stop people from needing to send money home. They can’t stop the taka from losing value. And they can’t stop millions of young people from using their phones to build a financial future - even if it’s against the law.

The real question isn’t whether crypto should be banned. It’s why the system made this necessary in the first place.