The protesters chanted anti-Buddhist slogans, blaming the burning of the Muslim holy book on a Buddhist boy, district police superintendent Saleem Jahangir said.
The boy is tagged in the photo but did not post it himself, Jahangir said. The boy's account has been deleted and police are not naming him.
The violence began in Ramu in Cox's Bazar, a town south of the capital Dhaka on the coast, early Sunday and it spread in the adjacent areas through Sunday evening, Jainul Bari, administrative chief of the tourist district, told CNN.
"We've called in army along with paramilitary troopers and police who were constantly guarding the areas to ward off any further violence," Bari said.
At least seven temples were burned in Ramu and five others were damaged in other areas, police said. At least 50 houses were damaged or destroyed, they said.
Police were not able to provide information on the number of people injured in the violence.
"Now the situation is under control," Jahangir said.