If you’re using Bitcoin, Ethereum, or USDT in Myanmar, you’re playing with fire. Not metaphorically. Literally. Your bank account can vanish overnight, and you could end up in jail. There’s no warning, no second chance. The Central Bank of Myanmar (CBM) doesn’t negotiate. Since May 2024, they’ve been actively shutting down accounts, filing criminal charges, and dragging people into court for just owning or trading cryptocurrency.
It’s Not Just Illegal - It’s a Criminal Offense
Myanmar doesn’t just discourage crypto. It treats it like drug trafficking. Under the Central Bank of Myanmar Law a legal framework that gives the CBM exclusive control over the country’s currency, any transaction involving Bitcoin, Litecoin, Ethereum, or even Tether (USDT) is classified as illegal currency conversion. That’s not a fine. That’s a criminal act.The CBM doesn’t just freeze accounts - they close them permanently. No appeals. No refunds. All your savings, salary deposits, even money meant for rent or medical bills can disappear in a single day. And it’s not just banks. If you use a mobile wallet linked to your ID, or even a payment app tied to your national registration number, they can trace it. Your phone number, your Facebook profile, your Telegram channel - all become evidence.
What Triggers an Account Closure?
You don’t need to be a miner or a trader to get caught. Just sending USDT to a friend in Thailand to pay for family medical bills? Illegal. Buying Bitcoin on a peer-to-peer app to protect your savings from the collapsing kyat? Illegal. Even accepting crypto as payment for goods? Still illegal.The CBM’s 2024 notice was crystal clear: “Any sale, purchase, exchange, or transfer of unregulated digital currencies will result in immediate account closure and legal action.” They didn’t say “if caught.” They said “will result.” This isn’t a threat - it’s policy.
They’ve targeted specific platforms too. Facebook pages selling crypto, Telegram groups coordinating trades, and even websites hosted outside Myanmar that Myanmar residents access - all are under surveillance. The CBM works with telecom providers to track IP addresses and mobile data usage. If you’re using a VPN to access Binance or Kraken, they know. And they don’t care if you’re just trying to save money.
More Than Just a Closed Account
Account closure is just the beginning. Under the Anti-Money Laundering Law a legal tool used to prosecute financial crimes, including crypto transactions, you can face up to five years in prison. Under the Financial Institutions Law a law that governs all banking and financial services in Myanmar, fines can reach millions of kyat - more than most people earn in a year.There are real cases. In late 2024, a 28-year-old man in Mandalay was arrested after transferring $5,000 worth of USDT to his sister in Malaysia. He used Facebook Messenger to coordinate the trade. The CBM traced the transaction through his bank records, his phone logs, and his Facebook activity. He spent six months in pre-trial detention. His account was closed. His phone was seized. His family lost their main source of income.
Another case involved a university student who mined Bitcoin using a laptop in his dorm. He didn’t sell it. He just held it. The university’s IT department reported him after noticing unusual network traffic. He was charged under the Anti-Money Laundering Law. He’s still waiting for trial.
Why Is Myanmar So Harsh?
The military government lost control of the economy after the 2021 coup. The kyat collapsed. Inflation hit 60%. People turned to crypto because it was the only way to send money out of the country or protect what little they had left. The CBM saw this as a threat to their power.They can’t control crypto. They can’t tax it. They can’t track every transaction - or so they thought. So they turned to the one thing they can control: the banking system. Close the accounts. Cut off the flow. Make it too dangerous to even try.
But here’s the twist: while the CBM bans crypto, they’re building their own digital currency. In June 2025, they formed the Central Committee for the Issuance of Central Bank Digital Currency a government body created to develop a state-controlled digital kyat. This isn’t about stopping innovation. It’s about monopolizing it. They want a digital kyat they can track, freeze, and control - exactly the opposite of Bitcoin.
What’s Happening Underground?
Despite the risks, crypto use hasn’t stopped. It’s just gone deeper.Telegram channels now run 24/7, trading USDT for cash via meetups in crowded markets. People use burner phones, cash-only deals, and trusted middlemen. Some miners have moved to Thailand and Laos, where they can operate without fear. Others stay, hiding rigs in basements, using solar power to avoid drawing attention to electricity usage.
The National Unity Government (NUG), which opposes the military regime, declared USDT legal tender in 2021 in areas they control. That means the same transaction can be legal in one part of the country and a crime in another. There’s no clear map. No official guidance. Just fear.
Who’s Most at Risk?
You don’t have to be a crypto expert to get caught. The CBM doesn’t care if you know the difference between ETH and USDT. They care if you used a bank account to move money. That means:- Students sending money home from abroad
- Workers sending remittances to families
- Small business owners accepting crypto payments
- Anyone using Facebook or Telegram to trade
- People holding crypto in wallets linked to their ID
If you’re using any digital payment system tied to your name, you’re vulnerable. Even if you’ve never bought crypto - if someone else used your account to receive funds, you’re still liable.
What Should You Do?
If you’re in Myanmar and you’re holding crypto, the safest move is to get out. Not the crypto - you. If you have the means, leave the country. If you can’t, stop using any bank account linked to crypto activity. Don’t trade. Don’t send. Don’t receive. Even holding it in a non-bank wallet carries risk if your identity is tied to it.If you’re outside Myanmar and sending money to someone inside, don’t use crypto. Use official channels, even if they’re slow or expensive. The risk of your recipient getting arrested or having their account shut down isn’t worth it.
There’s no workaround. No legal gray area. No loophole. The CBM doesn’t care about your reasons. They don’t care if you’re helping your family. They care about control. And they will use every tool they have to enforce it.
The Bigger Picture
Myanmar isn’t just cracking down on crypto. It’s cracking down on financial freedom. The account closures aren’t about stopping crime. They’re about stopping resistance. When people can’t move money, they can’t organize. They can’t survive. They become dependent.The CBM’s goal isn’t to protect the economy. It’s to protect power. And they’re willing to destroy lives to do it.
If you’re reading this because you’re thinking about crypto in Myanmar - stop. The penalties aren’t just severe. They’re designed to terrify. And they work.
Is it illegal to hold cryptocurrency in Myanmar?
Yes. Simply holding Bitcoin, Ethereum, or USDT is not explicitly banned, but if authorities trace any transaction - even a single transfer - you can be charged with illegal currency conversion. Holding crypto without ever moving it is risky because your wallet address may still be linked to your identity through past bank activity or device records.
Can you get arrested for using crypto in Myanmar?
Yes. Under the Anti-Money Laundering Law and Financial Institutions Law, individuals involved in cryptocurrency transactions can be arrested and face prison terms of up to five years. There are documented cases of arrests for sending USDT via Facebook or mining with a personal laptop.
Do banks in Myanmar monitor crypto transactions?
Yes. Banks in Myanmar are legally required to report suspicious activity to the Central Bank of Myanmar. Any transfer to or from known crypto exchange addresses, or repeated small transfers matching patterns of peer-to-peer trading, triggers an automatic review. Account closures follow within days.
Is Tether (USDT) treated differently than Bitcoin in Myanmar?
No. All cryptocurrencies are treated equally under the law. However, USDT is targeted more often because it’s the most widely used stablecoin for remittances and underground trade. Its stability makes it the preferred tool for moving value, which makes it the easiest to trace and the most visible to regulators.
What happens if your account is closed for crypto use?
Your account is permanently closed. You lose access to all funds. You cannot reopen it. You may be summoned for questioning by the CBM. In many cases, you’ll be charged under financial or anti-money laundering laws, leading to fines or imprisonment. There is no appeal process.
Is there any legal way to use crypto in Myanmar?
No. There are no legal exemptions, no licensed exchanges, and no government-approved use cases. Even using crypto for humanitarian aid or remittances is illegal. The only exception is the state’s own planned digital kyat - which will be fully controlled by the Central Bank of Myanmar.
Can foreign crypto exchanges be shut down in Myanmar?
Foreign exchanges like Binance or Kraken cannot be shut down directly because they operate outside Myanmar. However, the CBM blocks access to their websites within the country and pressures telecom providers to cut off traffic. They also threaten legal action against anyone who uses them, making access effectively impossible.
How do authorities track crypto users in Myanmar?
Authorities track users through bank records, mobile phone data, Facebook and Telegram activity, IP addresses, and device IDs. Many users link their crypto wallets to bank accounts or payment apps tied to their national ID. Even using a VPN doesn’t fully protect you - the CBM works with telecom companies to log connections and identify patterns of suspicious behavior.
What’s the difference between the CBM’s stance and the NUG’s stance on crypto?
The Central Bank of Myanmar (CBM), controlled by the military regime, bans all cryptocurrency. The National Unity Government (NUG), which opposes the regime, declared USDT legal tender in areas it controls as a way to bypass currency controls and support resistance efforts. This creates a dangerous legal gray zone where the same action can be legal or criminal depending on location.
Are there any safe ways to send money to someone in Myanmar?
Yes. Use official remittance services like Western Union, MoneyGram, or bank wire transfers through approved channels. Avoid peer-to-peer apps, Telegram, or crypto. Even if the recipient doesn’t use crypto, receiving funds from a crypto-linked source can trigger an investigation. Stick to traceable, regulated methods to protect both you and the recipient.
If you’re outside Myanmar and considering helping someone inside with crypto - don’t. The cost isn’t just financial. It’s human. And it’s too high.
Comments (3)
Stephen Gaskell
This is pure tyranny. If you want to control money, you need to control the people first.
Lauren Bontje
Oh wow, another sob story about people trying to bypass sanctions. The CBM isn't the villain here - it's protecting a collapsing state from being looted by crypto grifters. If you're using USDT to dodge economic consequences, you're not a victim, you're a parasite.
CHISOM UCHE
From a financial sovereignty perspective, the CBM's move is a textbook case of monetary hegemony enforcement. The absence of a regulated on-ramp creates a zero-sum博弈 where decentralized finance becomes an existential threat to state-controlled capital flows. The use of telecom metadata for transaction tracing represents a surveillance-capitalist escalation in fiscal governance.