Back to Analyses

Myanmar

Retail_Trading_Status

Banned Unknown
Edit
Analysis ID
#452
Version
Latest
Created
2025-06-26 13:05
Workflow Stage
Live

Executive Summary

Retail cryptocurrency trading is explicitly prohibited in Myanmar, with the Central Bank of Myanmar (CBM) leading enforcement efforts. Cryptocurrencies are not recognized as legal tender, and the CBM utilizes laws like the Anti-Money Laundering Law and the Financial Institutions Law to enforce the ban. There are no specific licensing or regulatory frameworks for crypto platforms. Despite the ban, an underground cryptocurrency market thrives, particularly using stablecoins like USDT for remittances and resistance financing, highlighting a regulatory dichotomy with the opposition National Unity Government (NUG) declaring Tether as legal tender in controlled regions.

Key Pillars

The primary regulator is the Central Bank of Myanmar (CBM), which prohibits retail cryptocurrency trading. Key pillars include the non-recognition of cryptocurrencies as legal tender, prohibition of financial institutions from dealing in digital currencies, and enforcement via the Foreign Exchange Management Law, Financial Institutions Law, and Anti-Money Laundering (AML) Law. There are no licensing or registration requirements for crypto platforms due to the ban.

Landmark Laws

  • Central Bank of Myanmar Law, Anti-Money Laundering Law, Financial Institutions Law: Used to enforce the ban on cryptocurrency transactions, enabling actions like freezing bank accounts and initiating legal proceedings.
  • CBM Notification No. 9/2020 (May 2020): Prohibits residents from buying, selling, or trading cryptocurrencies like Bitcoin, Litecoin, Ethereum, and Perfect Money, especially on social media.
  • Cybersecurity Law (Drafted January 2022): Criminalizes the use of cryptocurrency in response to the NUG declaring Tether as an official currency.

Considerations

Cryptocurrencies are not legally recognized as currency in Myanmar. There are no specific crypto tax laws, though existing income tax and capital gains tax laws could theoretically apply. The CBM warns against the use of cryptocurrencies, citing risks of illegal currency conversions and unauthorized money transfers, and threatens legal action. Operationally, the CBM's ban has led to a significant underground cryptocurrency scene, with citizens using stablecoins like USDT for remittances and savings due to capital controls and the collapse of the local currency.

Notes

Historically, the CBM first issued warnings against cryptocurrency trading around May 2019, followed by Notification No. 9/2020. The opposition National Unity Government (NUG) declared Tether (USDT) as legal tender in December 2021 in regions it controls, creating a 'regulatory dichotomy.' Despite the official ban, citizens use P2P platforms like Telegram and offshore exchanges accessed through VPNs. There are no specific KYC/AML requirements for cryptocurrency platforms operating within Myanmar, as these platforms are not legally permitted. Some sources are Google Search redirects, making direct source confirmation challenging.

Detailed Explanation

Retail cryptocurrency trading is explicitly banned in Myanmar. The Central Bank of Myanmar (CBM) issued initial warnings against cryptocurrency trading around May 2019, formalizing the ban with Notification No. 9/2020 in May 2020. This notification prohibited residents from buying, selling, or trading cryptocurrencies like Bitcoin (BTC), Litecoin (LTC), Ethereum (ETH), and Perfect Money (PM), with specific mention of transactions on social media platforms. The CBM stated that those engaging in digital currency transactions did so at their own risk initially, but enforcement followed.

Following Notification 9/2020, the CBM began taking legal action against individuals involved in illegal currency conversions and unauthorized hundi money transfers using cryptocurrencies like Tether (USDT). Enforcement measures have included freezing bank accounts and initiating legal proceedings. In response to the opposition National Unity Government (NUG) declaring Tether as an official currency in December 2021, the State Administration Council (SAC) drafted a cybersecurity law in January 2022 that criminalized the use of cryptocurrency.

The CBM continues to issue warnings, including a public notice on May 24, 2024, reiterating the prohibition against the sale, purchase, exchange, or transfer of unregulated digital currencies and unauthorized money transfers. The CBM emphasized its readiness to close bank accounts and pursue legal action, including imprisonment and fines, under the Central Bank of Myanmar Law, the Anti-Money Laundering Law, and the Financial Institutions Law.

Cryptocurrencies are not recognized as official currency in Myanmar; the CBM is the sole authorized currency issuer. Financial institutions are prohibited from accepting, facilitating, or trading digital currencies. The CBM utilizes the Foreign Exchange Management Law, the Financial Institutions Law, and the Anti-Money Laundering (AML) Law to enforce the ban. Crypto-linked transfers, especially large ones, are considered suspicious and can trigger investigations under AML laws. There are no specific licensing regulations, sandbox environments, or specific tax circulars for virtual asset activities, as cryptocurrency trading is banned.

Despite the official ban and warnings from the CBM, an underground cryptocurrency scene has emerged, with citizens using stablecoins like USDT, particularly on the Tron network, for remittances, savings, and to finance resistance movements following the 2021 coup, the collapse of the local currency (kyat), and imposed capital controls. Peer-to-peer transactions occur via platforms like Telegram and offshore exchanges accessed through VPNs. The opposition NUG declaring Tether (USDT) as legal tender in regions it controls further complicates the situation. General AML laws are in place, but there are no specific KYC/AML requirements for cryptocurrency platforms operating within Myanmar.

Summary Points

Myanmar: Retail Cryptocurrency Trading Regulatory Analysis (Report Date: 2025-06-26)

I. Regulatory Status:

  • Banned: Retail cryptocurrency trading (buying, selling, and holding) is explicitly prohibited in Myanmar.
  • No Legal Tender: Cryptocurrencies are not recognized as legal tender. The Central Bank of Myanmar (CBM) is the sole authorized currency issuer.
  • Financial Institution Prohibition: Financial institutions are forbidden from accepting, facilitating, or trading digital currencies.
  • No Licensing/Regulation: No licensing regulations, sandbox environments, or specific tax circulars exist for virtual asset activities. No domestic or foreign exchange has CBM authorization.

II. Key Regulatory Bodies & Roles:

  • Central Bank of Myanmar (CBM):
    • Primary regulatory body.
    • Issues directives and warnings against cryptocurrency trading.
    • Enforces the ban through legal frameworks.
    • Freezes bank accounts and initiates legal proceedings against violators.
  • State Administration Council (SAC):
    • Drafted a cybersecurity law criminalizing cryptocurrency use.
  • Ministry of Information:
    • Publishes public notices reiterating the CBM's stance and warnings.
  • National Unity Government (NUG):
    • Declared Tether (USDT) as legal tender in regions it controls, creating a regulatory dichotomy.

III. Important Legislation & Regulations:

  • Central Bank of Myanmar Law: Used to enforce the ban and take legal action.
  • Anti-Money Laundering (AML) Law: Used to investigate and prosecute crypto-linked transfers, especially large ones.
  • Financial Institutions Law: Used to enforce the ban and take legal action.
  • Foreign Exchange Management Law: Used to enforce the ban on cryptocurrency transactions.
  • Cybersecurity Law (Draft, January 2022): Criminalizes cryptocurrency use.
  • CBM Notification No. 9/2020 (May 2020): Explicitly prohibits residents from buying, selling, or trading cryptocurrencies.

IV. Compliance Requirements:

  • No official compliance requirements for crypto platforms: Due to the ban, no specific KYC/AML or other compliance requirements exist for cryptocurrency platforms operating within Myanmar.
  • General AML compliance: Existing AML laws are cited as a basis for action against illegal crypto transactions.

V. Notable Restrictions & Limitations:

  • Explicit Ban: Complete prohibition on retail cryptocurrency trading.
  • Enforcement: CBM actively enforces the ban through account closures, fines, and imprisonment.
  • No Legal Recognition: Cryptocurrencies have no legal standing.
  • Financial Institutions Restrictions: Financial institutions cannot engage in crypto-related activities.
  • Taxation Ambiguity: While existing tax laws could theoretically apply, practical application is not feasible due to the illegal status of crypto trading.

VI. Recent Developments & Changes:

  • May 2019/2020: Initial Ban and Warnings: The CBM first issued warnings against cryptocurrency trading around May 2019 and followed up with Notification No. 9/2020 in May 2020.
  • Post-2020 Enforcement: Increased enforcement actions, including freezing bank accounts and legal proceedings.
  • December 2021: NUG declared Tether (USDT) as legal tender in controlled regions.
  • January 2022: SAC drafted a cybersecurity law criminalizing cryptocurrency use.
  • May 24, 2024: CBM reiterated the prohibition against cryptocurrency activities and warned of legal action.
  • Ongoing Warnings (2024): The CBM has continued to issue warnings.
  • Underground Market Growth: Despite the ban, a significant and expanding underground cryptocurrency market exists, particularly for USDT.
  • Regulatory Dichotomy: Conflict between the official ban and the NUG's acceptance of USDT.

VII. Sources:

Full Analysis Report

Retail Trading Status: Myanmar

Report Date: 2025-06-26

Topic: Retail_Trading_Status
Description: Assess whether individual citizens and residents in the country are legally permitted to buy, sell, and hold cryptocurrencies. Detail the regulatory environment surrounding this activity (e.g., KYC/AML requirements imposed on platforms, general warnings issued).

1. Current Status:

Banned

2. Detailed Narrative Explanation:

Retail cryptocurrency trading (buying, selling, and holding) is explicitly prohibited in Myanmar. The Central Bank of Myanmar (CBM) has issued clear directives and warnings stating that cryptocurrencies are not recognized as legal tender and that engaging in such activities is illegal. This ban is enforced through various legal frameworks, including the Central Bank of Myanmar Law, the Anti-Money Laundering Law, and the Financial Institutions Law.

Historical Context and Regulatory Actions:

  • May 2019/2020: Initial Ban and Warnings: The CBM first issued warnings against cryptocurrency trading around May 2019 and followed up with Notification No. 9/2020 in May 2020. This notification explicitly prohibited residents from buying, selling, or trading cryptocurrencies like Bitcoin (BTC), Litecoin (LTC), Ethereum (ETH), and Perfect Money (PM), particularly highlighting transactions on social media platforms. Initially, the CBM stated that those engaging in digital currency transactions did so at their own risk without immediate enforcement.
  • Post-2020 Enforcement: Following Notification 9/2020, the CBM began to take legal action against individuals involved in illegal currency conversions and unauthorized hundi money transfers using cryptocurrencies like Tether (USDT). Enforcement measures have included freezing bank accounts and initiating legal proceedings.
  • Cybersecurity Law (Drafted January 2022): In response to the opposition National Unity Government (NUG) declaring Tether as an official currency in December 2021, the State Administration Council (SAC) drafted a cybersecurity law that criminalized the use of cryptocurrency.
  • Ongoing Warnings (2024): The CBM has continued to issue warnings. On May 24, 2024, a public notice reiterated the prohibition against the sale, purchase, exchange, or transfer of unregulated digital currencies and unauthorized money transfers. The CBM emphasized its readiness to close bank accounts and pursue legal action, including imprisonment and fines.

Current Regulatory Landscape:

  • No Legal Recognition: Cryptocurrencies are not recognized as official currency in Myanmar. The CBM is the sole entity authorized to issue currency.
  • Prohibition on Financial Institutions: Financial institutions in Myanmar are not permitted to accept, facilitate, or trade digital currencies.
  • Enforcement Mechanisms: The CBM utilizes the Foreign Exchange Management Law, the Financial Institutions Law, and the Anti-Money Laundering (AML) Law to enforce the ban on cryptocurrency transactions. Crypto-linked transfers, especially large ones, are considered suspicious and can trigger investigations under AML laws.
  • No Specific Licensing or Regulation for Crypto Platforms: As cryptocurrency trading is banned, there are no licensing regulations, sandbox environments, or specific tax circulars for virtual asset activities. No domestic or foreign exchange has CBM authorization to operate.
  • Taxation Ambiguity: While there are no specific crypto tax laws, existing income tax and capital gains tax laws could theoretically apply if profits were legally obtained. However, due to the illegal status of crypto trading, practical application and reporting are not feasible.

Dichotomy in Practice:

Despite the official ban and warnings from the military-led CBM, there is a significant and expanding underground cryptocurrency scene in Myanmar. Citizens are reportedly using stablecoins like USDT, particularly on the Tron network, for remittances, savings, and to finance resistance movements, especially following the 2021 coup, the collapse of the local currency (kyat), and imposed capital controls. Peer-to-peer transactions often occur via platforms like Telegram and offshore exchanges accessed through VPNs.

The opposition National Unity Government (NUG) further complicates the situation by declaring Tether (USDT) as legal tender in regions it controls to bypass the junta's currency controls. This has led to a "regulatory dichotomy" where official state policy clashes with on-the-ground realities and the actions of the parallel government.

KYC/AML:

While general AML laws are in place and are cited as a basis for action against illegal crypto transactions, there are no specific KYC/AML requirements for cryptocurrency platforms operating within Myanmar, as these platforms are not legally permitted. Any KYC/AML measures would be those undertaken by individuals using informal channels or offshore platforms.

Conclusion:

The official stance of the regulatory authorities in Myanmar, primarily the Central Bank of Myanmar under the State Administration Council, is a clear ban on retail cryptocurrency trading. This is supported by official notifications, public warnings, and the threat of legal action, including fines and imprisonment. Despite this, a significant informal market exists, driven by political instability and economic pressures.

3. Specific, Relevant Text Excerpts:

  • Central Bank of Myanmar (CBM) Notification 9/2020 (May 2020): "prohibiting all persons residing in Myanmar from engaging in the sale, purchase, or exchange of unregulated digital currencies. The list of prohibited currencies includes widely recognized cryptocurrencies such as Bitcoin (BTC), Litecoin (LTD), Ethereum (ETH), and Perfect Money (PM), with a particular emphasis on transactions conducted through personal Facebook accounts and web pages." (Source: Tilleke & Gibbins, CoinStats)
  • Central Bank of Myanmar Public Notice (May 24, 2024): "warning individuals against participating in the sale, purchase, exchange, or transfer of unregulated digital currencies, as well as unauthorized money transfers. The CBM has indicated its readiness to enforce regulations by closing bank accounts and pursuing legal action, which may result in imprisonment, fines, or both, in accordance with the Central Bank of Myanmar Law, the Anti-Money Laundering Law and the Financial Institutions Law." (Source: Tilleke & Gibbins, Ministry of Information, Rajah & Tann Asia)
  • Freeman Law (referencing CBM 2020 announcement): "In 2020, the Central Bank of Myanmar (CBM) announced that it does not recognize cryptocurrencies as an official currency, and anyone caught trading digital assets can be imprisoned or fined. In addition, the country's central bank issued an announcement stating that financial institutions are not allowed to accept or facilitate transactions using digital currencies." (Source: Freeman Law)
  • CoinStats (on the regulatory framework): "CBM is the only issuer of currency and it has defined crypto as an unrecognised, unregulated instrument and that gives it authority to freeze bank accounts and initiate criminal charges. Enforcement levers including the Foreign Exchange Management Law, Financial Institutions Law and AML laws are provided, and licensing regulations, sandbox regulations and tax circulars addressing virtual-asset activity have not been issued by any ministry." (Source: CoinStats)
  • UPay Blog (on the legality): "Cryptocurrency trading is illegal in Myanmar, with the Central Bank imposing restrictions... Owning or trading crypto assets can lead to imprisonment or fines." (Source: UPay Blog)
  • Ministry of Information (Public Notice, May 27, 2024, referencing CBM Directive 9/2020): "The Central Bank of Myanmar, with the directive 9/2020 released on 15 May 2020, has announced that digital currencies such as cryptocurrency, Bitcoin (BTC), Litecoin (LTC), Ethereum (ETH) and Perfect Money (PM) are not designated as legal currencies, and financial institutions are not allowed to sell/buy them using personal Facebook accounts and web pages... Therefore, people should refrain from violating the prohibitions... and if they are found to be in violation, their accounts will be closed, as well as imprisonment or fine or both under the Anti-Money Laundering Law and the Financial Institutions Law." (Source: Ministry of Information)
  • AInvest (on crypto policies): "Cryptocurrency policies in Myanmar are clear: digital currency is not legal tender and cannot be used for on-shore payments. While ownership and trading are not explicitly criminalized, trading itself is illegal." (Source: AInvest)

4. Direct, Accessible URL Links to Sources:

(Note: Some links are via Google Search redirects. Where possible, direct links to the primary source have been provided or sought. The information reflects the latest available data up to the report date.)

Web Sources (14)

Sources discovered via web search grounding

Search queries used (6)
  • Retail cryptocurrency trading status Myanmar 2024 2025
  • Central Bank of Myanmar cryptocurrency regulations
  • Myanmar cryptocurrency laws and regulations for individuals
  • KYC/AML requirements for cryptocurrency platforms in Myanmar
  • Official statements on cryptocurrency in Myanmar
  • Is cryptocurrency trading legal for individuals in Myanmar?
Source

Source

Source

Source

Source

Source

Source

Source

Source

Source

Source

Source

Source

Source

Reviews

No reviews yet

Submit Review

Challenge: Disagree with the analysis | Approval: Confirm it's correct | Refinement: Suggest improvements