Quick Answer
No, cryptocurrency is illegal in Myanmar.
- The Central Bank prohibits all crypto sales, purchases, and exchanges.
- Violators face imprisonment, fines, and frozen accounts.
Legal Status of Crypto in Myanmar
Cryptocurrency is effectively illegal in Myanmar due to the prohibitive stance of the Central Bank of Myanmar (CBM). The CBM, the country's sole authority on currency, has issued multiple warnings and notifications that forbid the buying, selling, or exchanging of all digital assets. While a specific statutory law against crypto is absent, the CBM actively enforces its directives, taking legal action against violators under the Anti-Money Laundering Law and the Financial Institutions Law.
Current Regulations
The Central Bank of Myanmar (CBM) maintains a strict prohibition on all cryptocurrency activities, a position it strongly reiterated in a public notice on May 24, 2024. Under Directive 9/2020, the CBM explicitly forbids the sale, purchase, or exchange of digital currencies, including Bitcoin (BTC), Ethereum (ETH), and Tether (USDT). The government actively enforces these rules, taking legal action against violators under the Anti-Money Laundering Law and the Financial Institutions Law, which can result in severe penalties.
Regulatory Authorities
Several key authorities in Myanmar are involved in overseeing and enforcing the country's strict stance on cryptocurrency.
- Central Bank of Myanmar (CBM): As the country's sole currency issuer, the CBM has explicitly prohibited all crypto-related activities, including buying, selling, and exchanging digital assets. It enforces these prohibitions by freezing accounts and initiating legal action under various financial laws.
- Myanmar Financial Intelligence Unit (MFIU): The MFIU is the central agency for combating money laundering and terrorism financing, which includes investigating illicit financial flows involving cryptocurrencies. It analyzes suspicious transactions and coordinates with other agencies to enforce the Anti-Money Laundering Law, under which crypto-related offenses are prosecuted.
Historical Context
Myanmar's crypto regulations have progressively tightened. In May 2019, the Central Bank of Myanmar (CBM) first denied digital currencies as legal tender. This stance hardened in May 2020 with Directive 9/2020, which formally prohibited all trading of assets like Bitcoin and Ethereum, shifting policy from a warning to an outright ban. Since then, the CBM has actively enforced these rules, targeting illegal transfers and taking legal action. A public notice in May 2024 reiterated the ban, warning of imprisonment and frozen accounts, creating a highly restrictive environment for any crypto activity.
Compliance Requirements for Businesses in Myanmar
Businesses in Myanmar, particularly financial institutions, must navigate a complex web of regulations designed to combat illicit financial activities. Key compliance obligations are rooted in Anti-Money Laundering (AML) and Countering the Financing of Terrorism (CFT) frameworks, which outline several essential rules.
- AML Checks: Businesses are required to report large transactions (deposits, withdrawals, or transfers of 100 million Kyats and above) as well as any unusual or suspicious transactions, regardless of the amount. The regulatory framework also mandates the freezing of funds linked to suspected terrorists and the use of official checklists to identify potentially illicit activities.
- KYC Requirements: At the core of compliance are Know Your Customer (KYC) and Customer Due Diligence (CDD) procedures. Institutions must follow specific CDD measures, which include verifying customer identities, understanding the purpose of the business relationship, and conducting ongoing monitoring. For high-risk clients, such as Politically Exposed Persons (PEPs), enhanced due diligence is required. Furthermore, establishing business relationships with shell banks is strictly prohibited.
- Other Mandatory Procedures: Financial institutions must appoint compliance officers to oversee reporting. A critical requirement is record keeping; all documents related to accounts and transactions must be retained for at least five years after an account is closed. Businesses must also implement formal risk management practices and prepare for on-site inspections. Non-compliance can result in administrative penalties under the Control of Money Laundering Law.
Why this matters for Cross-Border Payments
For businesses engaged in cross-border payments with Myanmar, these stringent regulations introduce significant operational hurdles and risks. The rigorous AML/CFT checks and complete ban on cryptocurrencies mean that all transactions face intense scrutiny, often leading to delays, increased compliance costs, and a higher likelihood of being frozen. These pain points can disrupt supply chains, complicate financial settlements, and make navigating the country's financial system a complex endeavor for international partners.
How Lightspark Enables Compliant Crypto-Native Payments
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To help partners navigate complex regulatory environments, Lightspark provides tools that facilitate compliance. Features like audit-ready reporting, flexible custody options, and secure SSO help regulated institutions meet their KYC and AML obligations. Crucially, Grid Switch allows these entities to leverage the network's speed and efficiency without directly handling cryptocurrency, offering a compliant pathway to modern payments even in highly restrictive markets.
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Notice: This article is provided for informational purposes only and does not constitute legal advice.
Sources
- “AML and CFT Laws, Rules, Directives and Guidelines.” Myanmar Citizens Bank, mcb.com.mm/governance/compliance/aml-and-cft-laws-rules-directives-and-guidelines/.
- Central Bank of Myanmar. “Public Notice.” Ministry of Information, 27 May 2024, www.moi.gov.mm/moi:eng/announcements/14061.
- Central Bank of Myanmar. Regulatory and Supervisory Framework for Anti-Money Laundering and Combating the Financing of Terrorism (AML/CFT). Central Bank of Myanmar, 19 Dec. 2017, myanmar-law-library.org/IMG/pdf/regulatory_and_supervisory_framework_for_aml-cft_.pdf.
- “Myanmar and Cryptocurrency.” Freeman Law, 2022, freemanlaw.com/cryptocurrency/myanmar/.
- “Myanmar denies use of digital currency as legal tender.” Cambodianess, 3 May 2019, www.cambodianess.com/article/myanmar-denies-use-of-digital-currency-as-legal-tender.
- Thean-ngarm, Yuwadee, et al. “Myanmar’s Central Bank Issues Further Warning against Crypto Trading.” Tilleke & Gibbins, 3 June 2024, www.tilleke.com/insights/myanmars-central-bank-issues-further-warning-against-crypto-trading/.
- TWA/EM. “Illegal digital currency converters face legal action.” Global New Light Of Myanmar, 26 May 2024, www.gnlm.com.mm/illegal-digital-currency-converters-face-legal-action/.
