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The Myanmar central bank claims cryptocurrencies are banned, but users disagree

May 22, 2020

The Central Bank of Myanmar (CBM) announced this does not recognize cryptocurrencies as the official currency and that Anyone caught trading digital assets can be detained or fined.

However, local crypto enthusiasts discuss whether pronouncements have legal force.

According to the Myanmar Times, the country’s central bank issued an announcement on May 15 claiming this Financial institutions are not authorized to accept or facilitate transactions with digital currencies.

The Myanmar central bank claims cryptocurrencies are banned, but users disagree
The Myanmar central bank claims cryptocurrencies are banned, but users disagree

The bank referred to these cryptocurrencies such as Bitcoin (BTC), Litecoin (LTC), Ethereum (ETH) and Perfect Money (PM) that are marketed via personal Facebook profiles are subject to the provisions of the CBM. Although no concrete consequences were mentioned in the announcement, The bank said trading such assets could result in years in prison or high fines.

There is no legal authority

However, Those who are involved locally in cryptocurrency trading appear to be far from frightened by announcements. U Nyein Chan Soe Win, Executive Director (CEO) of Get Myanmar platform said:

The CBM has not legally prohibited the use of cryptocurrencies. You just made an announcement. Since there is no official law, trading in digital currencies cannot be described as illegal.

It is not the first time that the Myanmar central bank is trying to block crypto in the country.. Cointelegraph reported last year that the WBC was asking consumers to stop trading cryptocurrencies because of concerns that inexperienced users could lose money.

Although the bank is trying to send the message that cryptocurrencies are not authorized in Myanmar, There appear to be no mechanisms or legal framework to regulate or block its use.

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