BUSINESS

Myanmar Suggests Life Imprisonment for Cryptocurrency Scammers

On May 14, Myanmar’s military introduced a draft bill that mandates life imprisonment for those involved in cryptocurrency scams.

Summary

  • The Anti-Online Scam Bill in Myanmar suggests life terms for running digital currency scam operations.
  • The legislation permits the death penalty for those employing violence, torture, or illegal detention to coerce victims into scam activities.
  • The military-aligned parliament in Myanmar will reconvene in the first week of June to further the discussions on this bill.

Named the Anti-Online Scam Bill, the draft states that individuals found guilty of “digital currency fraud” or managing an online scam center could receive sentences ranging from a decade to life imprisonment.

The bill allows for capital punishment against those who employ “violence, torture, unlawful arrest, detention, or cruel treatment” to coerce individuals into participating in online scams.

Military bill addresses digital currency fraud with severe penalties

The parliament, considered by analysts as a rubber-stamp body, is set to meet in the first week of June.

This bill represents the initial legislative action from the new government under coup leader Min Aung Hlaing, who took office last month.

Internet fraud rings have escalated into a significant regional issue. According to the FBI’s latest crime report, cryptocurrency fraud losses in the U.S. hit $11.4 billion, with over half of all online crime losses linked to crypto schemes. Many of these networks operate out of Southeast Asia.

Increased enforcement actions by U.S. authorities have been notable. In April 2026, the DOJ froze $701 million in cryptocurrency associated with global scam networks, specifically naming operations in Myanmar and Cambodia that utilize trafficked or coerced individuals for large-scale fraud.

The extent of operations in Myanmar is well-documented. Chainalysis discovered that romance scammers based in the KK Park compound in Myawaddy alone extracted nearly $100 million in cryptocurrency from global victims between 2022 and 2024.

This bill represents a regional trend. In March 2026, Cambodia adopted anti-fraud laws imposing up to ten years in prison for leaders of scams. Singapore is also gearing up to initiate a dedicated Cyber Command enforcement unit by July 2026.

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