Quick Summary

• Myanmar’s Central Bank (CBM) treats all crypto activity as illegal under multiple laws.
• Bank account closure is the first and most immediate sanction for anyone caught buying, selling, or transferring digital currencies.
• Violations can also trigger fines, imprisonment, or both, depending on the law invoked.
• Enforcement has intensified since the May2024 public notice, with dozens of accounts shut down.
• Future CBDC plans don’t soften the current ban; they simply shift the government’s focus to a state‑run digital kyat.

Background: Myanmar’s Crypto Ban

In Myanmar, Central Bank of Myanmar the nation‑wide monetary authority that controls all currency issuance and banking oversight has declared every form of cryptocurrency illegal since 2020. The ban is anchored in three overlapping statutes:

• The Central Bank of Myanmar Law grants the CBM exclusive right to issue legal tender and to regulate financial institutions.
• The Anti‑Money Laundering Law targets illicit fund flows, including those linked to unregulated digital assets.
• The Financial Institutions Law requires banks to comply with CBM directives, including account closures for prohibited activities.

After a soft warning in May2020, the CBM stepped up enforcement with a stark notice on 24May2024, explicitly stating that any sale, purchase, exchange, or transfer of “unregulated digital currencies” would trigger immediate bank account closure and possible criminal prosecution.

How Account Closure Works

When the CBM detects crypto‑related transactions-usually through monitoring of bank transfers, mobile money, or even social‑media‑linked payment links-it issues an order to the relevant financial institution. The bank then freezes and ultimately terminates the account, often within 48hours. Account holders lose access to all funds, and the frozen balance is typically seized pending investigation.

Key steps in the process:

1. Transaction flagged by CBM surveillance systems or a tip‑off.
2. CBM drafts a closure order citing the applicable law (often the Anti‑Money Laundering Law).
3. Bank receives the order, freezes the account and locks any pending transfers.
4. Within two business days, the account is permanently closed and the holder is notified via SMS or email.
5. Law enforcement may then initiate criminal proceedings, which can lead to fines or imprisonment.

Because the CBM’s authority is backed by the Financial Institutions Law, banks have no discretion to delay or appeal the order.

Penalty Landscape

The table highlights why cryptocurrency penalties Myanmar have become a phrase that anyone dealing with digital assets in the country hears often. The CBM doesn’t stop at the bank-once an account is closed, the holder is effectively cut off from the formal economy, making everyday transactions extremely difficult.

Real‑World Enforcement Cases

Since the 2024 notice, several high‑profile cases illustrate the CBM’s resolve:

• In August2024, a Yangon‑based trader was caught converting USDT on the Tron network into local kyat via a peer‑to‑peer platform. The CBM ordered his bank to close both personal and business accounts, and a court later sentenced him to 18months imprisonment.
• May2025 saw the shutdown of a small mining operation in the Shan State. Authorities seized mining rigs, closed the company’s corporate accounts, and fined the owners 7millionMMK.
• July2025, a popular Facebook page promoting “how‑to‑buy Bitcoin” was taken down after the admin’s bank accounts were frozen and later terminated, leading to a three‑year jail term for the page owner.

These examples underscore that the CBM follows a clear pattern: identify crypto activity, close the associated bank accounts, then pursue criminal charges under the relevant law.

Risk Management: What You Can Do

If you’re a Myanmar resident or a foreigner with ties to the country, consider these practical steps to avoid the severe fallout:

1. Stay offline. Avoid using any local bank or mobile‑money service for crypto‑related transfers.
2. Use offshore wallets. Keep funds on wallets that never interact with Myanmar’s banking system.
3. Limit exposure. If you must engage in crypto for remittance, use stablecoins only through vetted offshore exchanges and transfer them via encrypted channels (Telegram, Signal) to avoid detection.
4. Document everything. Keep clear records of any crypto activity in case you need to prove it was unrelated to your personal finances.
5. Consult legal counsel. Lawyers familiar with the Anti‑Money Laundering Law can advise on the safest ways to handle cross‑border crypto payments.

Remember, even indirect involvement-like sharing crypto‑related content-can trigger scrutiny.

Emerging CBDC Initiative and Future Outlook

On 24June2025, the CBM formed the Central Committee for the Issuance of Central Bank Digital Currency a high‑level body tasked with researching and potentially launching a state‑run digital kyat. While the committee signals a shift toward a government‑controlled digital currency, it does not relax the existing ban on private cryptocurrencies.

Key takeaways for the near future:

• The CBDC will likely be integrated with existing banking channels, meaning any future digital payments will still flow through regulated accounts.
• Underground crypto activity is expected to persist, especially for cross‑border remittances, but the risk of account closure remains high.
• International observers note that Myanmar’s approach mirrors other authoritarian regimes that allow a state‑issued digital currency while cracking down on private alternatives.

For anyone navigating Myanmar’s financial landscape, the safest bet is to treat all private crypto dealings as illegal and to monitor any policy updates from the CBM closely.

Frequently Asked Questions

What does “account closure” actually mean for a crypto user?

It means the bank freezes every transaction, locks the account, and then permanently shuts it down. Any money still in the account is seized, and the user loses access to formal banking services.

Can I still hold Bitcoin or Ethereum abroad without facing penalties?

Holding crypto in an offshore wallet that never touches a Myanmar bank reduces the risk, but if you ever move those assets through a local financial institution, the CBM can still act.

What fines are imposed for crypto‑related offenses?

Fines vary by law and severity, ranging from 1millionMMK to 10millionMMK (roughly $600‑$6,000 USD). The amount is often coupled with imprisonment.

Does the National Unity Government’s declaration of USDT as legal tender affect the ban?

Only in territories controlled by the NUG. In areas under the military junta, the CBM’s ban remains fully enforceable.

Will the upcoming CBDC replace the need for crypto?

The CBDC is intended for state‑controlled digital payments. It does not legalize private cryptocurrencies, which will stay banned unless the law changes.