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Myanmar Compliance Report

Generated 2026-09-22

Partially Regulated

Regulatory Overview

Regulatory Status
Some rules exist but significant gaps; draft legislation or limited guidance
Key Regulator(s)
Central Bank of Myanmar, Securities Exchange Commission of Myanmar
Primary Legislation
Published May 21, 2021, referencing the May 14 directive, Published May 19, 2021, referencing the May 14 directive, e.g., foreign exchange management law
Travel Rule
Adopted — Threshold: Implemented

Key Facts

  • aml Whether Adopted: No, it has not been adopted. The Central Bank of Myanmar (CBM) has consistently issued warnings against the use of cryptocurrencies and has stated that they are not legal tender. There is no specific legislation or guidance that enables or regulates Virtual Asset Service Providers (VASPs), let alone implements the Travel Rule. Reference: While specific, readily accessible CBM official statements on their website regarding a complete ban can be challenging to find due to website dynamics and political changes, numerous news outlets and financial intelligence reports confirm the CBM's prohibitive stance. For example, reports often cite CBM warnings dating back to 2020 or earlier, reiterated in subsequent periods, stating that cryptocurrencies are illegal in Myanmar. Effective Date: Not applicable. Since the Travel Rule has not been adopted, there is no effective date. Threshold Amounts: Not applicable. Without adoption, there are no defined threshold amounts for the Travel Rule. Which VASPs are Covered: Not applicable. Myanmar does not have a regulated VASP sector. Any entities engaging in virtual asset services would likely be operating outside of legal frameworks or potentially in violation of existing regulations regarding financial services. Technical Implementation Requirements: Not applicable. No regulatory framework means no technical implementation requirements for the Travel Rule. Penalties for Non-Compliance: There are no penalties specifically for non-compliance with the FATF Travel Rule in Myanmar, as it is not law. However, individuals or entities involved in cryptocurrency activities could face penalties under existing Myanmar laws related to: Central Bank of Myanmar (CBM) Regulations: Engaging in financial activities not permitted by the CBM or using instruments not recognized as legal tender. The specific penalties would depend on the interpretation of existing laws by the authorities.
  • enforcement Regulator: The Central Bank of Myanmar (CBM) is the primary financial regulator. The Central Bank of Myanmar Directive 9/2020 banning cryptocurrencies remains formally in effect, but enforcement has shifted as the military government proposed the Anti-Online Fraud Bill in 2026 targeting specific crypto-related crimes with penalties of 10 years to life, indicating a move from a blanket prohibition to targeted prosecution of fraud. Post-Coup Environment: Since the February 2021 military coup, Myanmar's financial and legal landscape has become highly opaque. The military junta (State Administration Council - SAC) maintains the ban. NUG's Stance: The National Unity Government (NUG), the parallel civilian government, recognized Tether (USDT) as an official currency in December 2021 to raise funds for its resistance, creating a stark contrast to the SAC's position. This is not a recognized legal tender by the de facto government. Nature of Enforcement: Enforcement under an outright ban is often not through public regulatory fines against entities, but rather through: Warnings: The CBM has issued repeated warnings against crypto use. Arrests/Seizures: Individuals found to be trading or using cryptocurrencies might face arrest under general financial laws, anti-money laundering regulations, or even emergency decrees. These arrests are rarely publicized with detailed information, specific penalty amounts, or clear "outcomes" in a transparent legal process that can be sourced. Lack of Due Process: In the current political climate, legal processes are often opaque, and information on arrests, charges, and penalties for financial crimes, let alone crypto-specific ones, is not readily available through official channels or independent media with full details.
  • licensing No specific test exists for crypto: The official government in Myanmar has not adopted a specific legal test equivalent to the Howey Test or any other framework for classifying cryptocurrency tokens as securities. This is primarily because its stance is one of outright prohibition, rendering such classification frameworks largely irrelevant under the current official policy. General Securities Exchange Law: Myanmar has a Securities Exchange Law (2014) which defines what constitutes a "security." However, this law predates the widespread emergence of cryptocurrencies and has not been updated or interpreted by the Securities Exchange Commission of Myanmar (SECM) to specifically address digital assets. The general definition of a "security" in the law might broadly encompass certain characteristics of investment contracts, but without specific guidance, it does not apply to crypto due to the CBM's blanket ban. None by official government: From the perspective of the official Myanmar government (SAC), no cryptocurrency tokens are officially recognized or considered as securities for regulatory purposes. All cryptocurrencies are generally deemed illegal for use as currency or investment. National Unity Government (NUG) stance (unofficial): It's crucial to note the parallel developments. The National Unity Government (NUG), formed by elected lawmakers ousted by the 2021 military coup, has taken a different stance. In December 2021, the NUG declared Tether (USDT) as an official currency for local use. This move, however, is not recognized by the SAC and has been met with further warnings from the CBM, reinforcing its ban on all cryptocurrencies. The NUG's action does not classify USDT as a security but rather as a currency. Non-existent: Given the official prohibition on cryptocurrencies, there are no established registration or exemption requirements for token issuers in Myanmar. Issuing or facilitating the trading of cryptocurrency tokens would likely be viewed as an unauthorized financial activity. Prohibited: Similarly, there are no specific rules for secondary trading of cryptocurrency tokens because all such activities are generally prohibited by the Central Bank of Myanmar. Any platforms or individuals engaging in secondary trading would be operating outside the legal framework and subject to enforcement actions. The CBM issued a strong warning in May 2020 (reiterated multiple times since, especially after the 2021 coup) stating that cryptocurrencies are not legal tender in Myanmar and that engaging in their use, trading, or mining is illegal. It warned the public about the risks involved, including financial loss, fraud, and money laundering. Following the NUG's declaration of USDT as an official currency in late 2021, the CBM under the SAC further intensified its warnings, explicitly stating that it would take legal action against anyone trading or using digital assets like USDT.
  • sanctions Executive Order (E.O.) 14014 (February 11, 2021): Blocks property of persons contributing to the situation in Burma. E.O. 14033 (July 20, 2021): Imposes additional sanctions in connection with the human rights abuses and undermining of democracy in Burma. E.O. 14077 (June 10, 2022): Further expands the scope to prohibit certain new investment in Burma. Burma Sanctions Regulations (31 CFR Part 537): Implements the Executive Orders. OFAC's Guidance on Sanctions Compliance for the Virtual Currency Industry: Clarifies that sanctions obligations apply equally to transactions involving virtual currencies. Blocking Sanctions: Prohibits U.S. persons from dealing in any property or interests in property of designated individuals and entities (Specially Designated Nationals and Blocked Persons – SDNs). This includes any type of asset, including virtual assets. Sectoral Sanctions: May target specific sectors of the Myanmar economy (e.g., state-owned enterprises, mining, timber, gems, banking). Financial Sanctions: Prohibitions on transactions with designated financial institutions or those facilitating sanctioned activities.
  • securities Myanmar does not have a specific legal framework for cryptocurrency or digital asset securities as of 2025–2026, and no licensing regime exists for virtual asset service providers. SECM Commission | Ministry of Planning and Finance The Securities and Exchange Commission of Myanmar (SECM), under the Ministry of Planning and Finance, is the designated regulator for securities matters, but it has not issued any rules specific to digital assets or cryptocurrencies. SECM Commission | Ministry of Planning and Finance No entity has been licensed to conduct cryptocurrency or digital asset securities business in Myanmar, and no application pathway exists under current laws. SECM Commission | Ministry of Planning and Finance The practical reality is that cryptocurrency activities operate in a legal gray zone, with no formal recognition, protection, or enforcement mechanism for digital asset businesses or investors. Burma - United States Department of State The primary securities regulator in Myanmar is the Securities and Exchange Commission of Myanmar (SECM), which operates under the Ministry of Planning and Finance; its official functions include overseeing securities markets and related activities. SECM Commission | Ministry of Planning and Finance The SECM is part of the Ministry of Planning and Finance's Financial Regulatory Department (FRD), which coordinates financial sector oversight in Myanmar. About FRD | Ministry of Planning and Finance The Myanmar Investment Law (MIL), enacted in October 2016 and effective April 1, 2017, governs foreign and domestic investment; it includes a "negative list" of prohibited, restricted, and special sectors, but does not mention virtual assets or cryptocurrencies. Burma - United States Department of State The Myanmar Companies Law, passed in December 2017 and expected to go into force in August 2018, updates business regulations and allows foreign investment of up to 35 percent in domestic companies, which opened the stock exchange to limited foreign participation, but it does not address digital assets. Burma - United States Department of State
  • stablecoin Stablecoins are not classified as legal e-money, payment tokens, or securities by the CBM for legitimate use within the financial system. Instead, they are treated as "virtual currencies" or "cryptocurrencies" that are not recognized as legal tender or permissible financial instruments. The CBM views them as high-risk, unregulated assets that could destabilize the financial system and facilitate illegal activities. Since stablecoins are prohibited, there are no specific reserve requirements for them. The CBM does not license or regulate any entity to issue stablecoins, therefore no such requirements exist. No licensing regime exists for stablecoin issuers. Issuing stablecoins in Myanmar, or operating a platform that facilitates their issuance or trading, would likely be considered an illegal financial activity under existing CBM directives. There are no legally protected redemption rights for stablecoin holders in Myanmar.
  • status Outright Ban: Myanmar's regulatory approach to cryptocurrencies and virtual assets is an outright ban. This means that activities related to crypto, including holding, trading, mining, or using them as a medium of exchange, are prohibited. This stance is largely driven by concerns over financial stability, consumer protection, potential for illegal activities (money laundering, terrorist financing), and capital controls in the context of the country's political and economic instability following the 2021 military coup. Central Bank of Myanmar (CBM): This is the primary regulatory body responsible for issuing and enforcing the ban on cryptocurrencies. As the monetary authority, the CBM oversees the financial system and aims to maintain currency stability. Website: Central Bank of Myanmar (Note: English content and specific press releases can sometimes be challenging to navigate or find directly for older announcements.) Central Bank of Myanmar's "Warning against Virtual Currencies" (May 14, 2021): This official statement explicitly prohibited cryptocurrencies. The CBM stated that "any person or organization must not issue, sell, buy, exchange, or use virtual currencies such as Bitcoin, Ethereum, and Tether as these are not legal tender in Myanmar." The warning highlighted the lack of legal recognition, high price volatility, and potential for fraud, money laundering, and terrorist financing as risks. It also warned that individuals engaging in such activities could face legal action under existing laws. Reference (Reputable News Source Quoting CBM): While a direct, stable English URL for the specific CBM press release might be elusive given the CBM's website structure and the political situation, numerous reputable news outlets reported on this official directive at the time. Example Report: The Irrawaddy - Myanmar Central Bank Bans Cryptocurrencies (Published May 21, 2021, referencing the May 14 directive).
  • travel rule Myanmar has no legal framework for cryptocurrency or digital asset regulation, and no travel-rule requirements have been enacted, proposed, or published by any authority as of 2025–2026. A comprehensive search of available primary sources—including Central Bank of Myanmar (CBM) notifications, Ministry of Planning and Finance orders, and official gazettes—found no legislation, regulation, directive, or official publication concerning cryptocurrency, digital assets, or virtual asset service providers (VASPs). No licensing regime for VASPs exists, and no entity has been licensed to conduct cryptocurrency activities in Myanmar. The country has no designated financial regulator with published authority over virtual assets. The FATF status of Myanmar regarding virtual assets is unknown; no FATF mutual evaluation or follow-up report addressing Myanmar's AML/CFT framework for virtual assets was located in the available sources. The military regime that seized power in the February 2021 coup arbitrarily enforces local laws, creating severe legal uncertainty for any business activity, including digital assets. The U.S. government advises "Do Not Travel" to Burma (Level 4) due to civil unrest, armed conflict, wrongful detention, and arbitrary enforcement of local laws. Burma Travel Advisory | Travel.State.gov No central bank, financial regulatory authority, or other government body in Myanmar has been identified in the available sources as having jurisdiction or authority over cryptocurrency, digital assets, or virtual asset service providers.

Sources

This report is AI-generated from publicly available regulatory sources. Last updated: 2026-09-06. View full profile