The Bangladesh central bank warned the country's citizens that the use of any virtual currency is a punishable offense 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.