28 May 2020
Myanmar Central bank made an announcement where it states that cryptocurrency is not an official currency. If any person or institute gets caught in digital currency trading will be imprisoned or fined. However, the local crypto enthusiasts argue if the pronouncements have any force in law.
This report was revealed by Myanmar Times, where it clearly states that the Central bank doesn’t allow financial institutions to accept or facilitate transactions using digital currencies.
As per the bank reference, cryptocurrencies like Bitcoin (BTC), Litecoin (LTC), Ethereum (ETH), and Perfect Money (PM) are being traded from personal Facebook profiles as subject to regulations enforced by the CBM. In the announcement there were no specific consequences but the bank said trading in digital assets can lead to years in prison or hefty fines.
The traders who were involved in crypto trading locally have been discouraged through the announcement. The Chief Executive Officer (CEO) of platform Get Myanmar, U Nyein Chan Soe Win said:
“The CBM has not prohibited the use of cryptocurrencies under the law. It has just issued an announcement. As there is no official law, it can’t be said that trading in digital currencies is illegal.”
Last year too the Central Bank of Myanmar has warned users to stop cryptocurrencies trading in the fear that inexperienced users could lose money.
Even though banks are making announcements that cryptocurrencies are unauthorized in Myanmar, it doesn’t seem to have a legal framework in place to regulate or block their use.