How freelancing changes rural economy – but exposing it to crypto risks
Housewives, farmers, fishermen and students also show surprisingly high levels of involvement, collectively accounting for nearly Tk800 crore in online gambling, betting and cryptocurrency-related transactions
In a remote village in Lalmonirhat, a 25-year-old former rental car driver now earns at least Tk2 lakh a month after leaving his driving job to work as a freelancer.
The freelancer, who requested anonymity, told The Business Standard that he now operates a transport business financed with income from freelancing while coordinating online work for around 30 young people from several nearby villages.
According to him, he receives work orders mainly from clients in Kenya and Vietnam involving website promotion to improve Google search rankings. He distributes assignments among his team members, who create online accounts for digital marketing campaigns.
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He said he earns Tk7 to Tk8 for each account created, sharing Tk2 to Tk3 with workers.
The freelancer said he has purchased 10 decimals of land worth around Tk30 lakh and owns two microbuses operating as rental vehicles.
"I am now learning English online for better negotiation with buyers," he said.
His shift from driving to freelancing has not only transformed his own life but also reshaped the village's economic landscape as young people – both men and women – are now engaged in online freelancing and earning foreign currency, improving their living standards.
Many tin-roofed houses are being replaced by concrete buildings as college students earn income alongside their studies and contribute to their families. Computers have become a common feature in homes, where students and unemployed youths work long hours on online freelance assignments and generate additional income.
One female freelancer, who completed a diploma in nursing but chose freelancing instead of entering the profession, said she earns between Tk12,000 and Tk15,000 a month by creating online accounts.
She said she and her husband, who also switched to freelancing after leaving the contracting business, now earn about Tk25,000 a month while working from home and caring for their newborn child.
Informal payments offer higher returns
There is a catch about these informal freelancers – the payment platforms they use are not the formal banking channel.
Many of them said they receive payments through cryptocurrency platforms such as Binance, BitMart and KuCoin because they offer higher exchange rates than formal channels.
The Lalmonirhat freelancer said he avoids formal banking channels because cryptocurrency payments offer better exchange rates and, according to him, do not require the same level of documentation.
He acknowledged maintaining accounts at around 10 banks to spread deposits and reduce questions regarding the source of funds. He recently opened a tax file and hired a lawyer to manage his tax affairs as transaction volumes had grown substantially.
Another freelancer said informal payment channels typically offer exchange rates Tk3 to Tk4 higher per US dollar than authorised banking channels.
Most freelancers interviewed by TBS said they receive payments through Binance accounts, the world's largest cryptocurrency exchange where people can buy, sell, and trade digital money like Bitcoin and Ethereum.
However, freelancers also acknowledged significant risks, saying overseas buyers sometimes disappear without making payments, leaving local contractors responsible for paying workers.
Despite the risk of financial losses, freelancers prefer informal channels to get payments due to higher dollar rates and avoiding tax. As they get work orders through informal platforms, they do not have formal documents to support their declared income.
Regulators warn of money laundering risks
Bangladesh Bank officials believe informal payment channels are increasingly being exploited by money launderers.
A senior Bangladesh Bank executive said local cryptocurrency agents pay higher exchange rates on behalf of individuals seeking to move money abroad illegally.
He compared the practice with informal remittance transfers through hundi, adding that freelancers had become an important channel used by money launderers because of widespread reliance on informal payment methods.
He also said many freelancers continue using such channels because of limited awareness of available formal payment options.
Bangladesh Bank data also indicate that prohibited cryptocurrency-linked activities have increased significantly in recent years.
According to the Bangladesh Financial Intelligence Unit's annual report for FY25, online gambling, betting and cryptocurrency-related transactions have spread across a wide range of occupations and income groups.
Service holders account for the highest transaction volume, with annual transactions exceeding Tk600 crore, indicating that salaried individuals with stable incomes are increasingly engaging in these prohibited digital platforms.
Housewives, farmers, fishermen and students also show surprisingly high levels of involvement, collectively accounting for nearly Tk800 crore in related transactions.
This suggests that such activities have spread beyond urban salaried groups to households, rural communities and young people, leading to the widespread misuse of personal savings, remittances and mobile financial services (MFS), according to the report.
The report also found that freelancers, technology workers and creative media professionals – who are generally more digitally active – have significant involvement, collectively handling more than Tk200 crore in suspicious fund flows.
Their participation suggests that tech-savvy individuals are not only vulnerable to crypto-related scams but may also be attempting to profit from offshore betting and unregulated trading platforms, said the report.
More concerning, the report said, is the involvement of lower-income groups, including day labourers, private tutors, coaching-centre instructors, retired people and dependants.
Despite their limited financial capacity, these groups collectively transacted hundreds of millions of taka, suggesting vulnerability to fraudulent schemes, addiction-driven transactions or the misuse of their accounts by others, the report said.
Overall, the report said the data showed that people from diverse and otherwise unrelated professions were participating in online gaming, betting, gambling and cryptocurrency-related transactions, reflecting a rapidly expanding and socially pervasive trend.
The widespread involvement across income groups and occupations points to a growing national risk, with illegal digital platforms influencing financial behaviour, encouraging addictive spending patterns and facilitating cross-border fund transfers, said the report.
Official freelancing earnings continue to grow
Despite the widespread use of informal payment channels, official earnings from freelancing have continued to increase.
Bangladesh Bank data show Bangladesh earned nearly $550 million from freelancing services during FY2024-25, equivalent to around Tk6,500 crore, compared with about $200 million in FY21.
Annual earnings have remained above $500 million in recent years.
Freelancers primarily receive payments through international digital payment platforms such as Payoneer and Wise when using formal channels.
According to bKash, which integrated Payoneer services into its platform in 2022, the mobile financial service provider now processes between $10 million and $12 million in freelancer payments annually.
Bangladesh Bank eases payment rules
To encourage greater use of formal payment channels, the Bangladesh Bank recently relaxed foreign exchange regulations for freelancers and other service exporters.
Under a circular issued in July, freelancers are now allowed to receive export proceeds based on electronic records, including platform statements, emails and other digital communications, eliminating the need for conventional export documentation.
The central bank also permits inward remittances of up to $20,000 without formal declaration requirements and allows payments of up to $10,000 per transaction through online payment gateway service providers.
The circular also allows banks to issue dual-currency freelancer cards and expands the use of mobile financial service providers and payment service providers.
In addition, freelancers in the information and communication technology sector may retain up to 50% of export earnings in foreign currency retention accounts, while other service exporters may retain up to 30%.
In a separate circular, Bangladesh Bank introduced a bank-intermediated framework for cross-border digital payments, allowing local banks to partner with international payment platforms, digital wallets and online payment gateways, including PayPal, Payoneer and similar service providers.
The central bank said the move would simplify international transactions for freelancers, software firms and digital service exporters while encouraging greater use of regulated payment channels.
