Financial Crime World

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Myanmar Tightens Grip on Cryptocurrency Transactions

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The Central Bank of Myanmar (CBM) has issued a stern warning to individuals against participating in unregulated digital currency transactions, as well as unauthorized money transfers. This move marks a significant escalation in the government’s efforts to maintain financial stability and prevent illicit activities such as money laundering.

Background on Cryptocurrency Regulations

In May 2020, the CBM had already issued a notification prohibiting individuals from engaging in the sale, purchase, or exchange of unregulated digital currencies, including widely recognized cryptocurrencies such as Bitcoin, Litecoin, Ethereum, and Perfect Money. This move was aimed at preventing unauthorized digital currency transactions within Myanmar.

Key Points:

  • The Central Bank of Myanmar Law makes it clear that the CBM is the sole entity authorized to issue currency in Myanmar.
  • Digital currencies are not recognized as official currency by the government.
  • The Foreign Exchange Management Law and the Financial Institutions Law further cement the illegality of cryptocurrency transactions within Myanmar.

Enforcement Measures

Since the issuance of the 2020 notification, the CBM has pursued legal action against persons involved in illegal currency conversion and unauthorized hundi money transfers using Tether (USDT). These enforcement measures have included shutting down bank accounts and initiating legal proceedings under the Anti-Money Laundering Law and the Financial Institutions Law.

Examples of Enforcement Measures:

  • Shutting down bank accounts
  • Initiating legal proceedings under relevant laws
  • Pursuing legal action against individuals involved in unauthorized digital currency transactions

Implications for Individuals and Businesses

While overseas cryptocurrency operators have yet to face legal action, individuals engaged in cryptocurrency transactions within Myanmar should be aware of the possible legal repercussions. The CBM’s warning serves as a clear indication that it will not hesitate to take enforcement measures against those who fail to comply with regulations.

Key Takeaways:

  • Individuals and businesses operating within Myanmar should be aware of the risks associated with engaging in unauthorized digital currency transactions.
  • Compliance with regulations is crucial to avoid legal repercussions.
  • The CBM’s stance on cryptocurrency trading may have far-reaching implications for individuals and businesses operating within the country.