Myanmar central bank confirms digital currency ban

Tuesday 26 May 2020 12:30 CET | News

The Central Bank of Myanmar (CBM) has outlawed the use of digital currencies in the country.

The CBM stated that it does not recognise digital currencies as legal tender. Furthermore, it banned all commercial banks from accepting or facilitating transactions made in digital currencies. The bank warned that anyone who trades in digital currencies stands facing heavy penalties including imprisonment and heavy fines.

Despite the strict warning, according to Coin Geek, digital currency users in the Southeast Asian country believe that this is just talk and that the law is on their side. According to the traders, the regulator has no authority to make such declarations or to act on them. They believe that such declarations must be supported by legislation, and as it stands, no law prohibits the trading of digital currencies.

This is not the first time that the CMB has gone against digital currencies. In 2019, the watchdog warned the public against trading in digital currencies, terming them a ‘risky investment’. The lack of regulations and the price volatility were some of the reasons the regulator cited.
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Keywords: cryptocurrency, Central Bank of Myanmar, digital currency, legislation
Categories: DeFi & Crypto & Web3
Countries: Myanmar
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