Myanmar Introduces Harsh Penalties to Tackle Online Frauds

Myanmar has passed the Anti-Online Scam Bill, marking a significant legislative move under President Min Aung Hlaing. This breakthrough law introduces severe consequences for those found guilty of using force or unlawful detention to coerce individuals into operating fraudulent online centers. Such actions resulting in death may lead to execution, as stated in the draft proposed earlier this year.

What are the penalties for cryptocurrency scams?

Severe measures are embedded in the bill to address scams, particularly those involving digital currencies. The legislation establishes a life sentence for managing or participating in online frauds, especially those tied to cryptocurrencies. For cases involving coercion or violence, sentences range from ten years to life. Lawmaker Aye Chan confirmed that the harsher measures, including the death penalty, have been preserved in the legislation.

Implications for Myanmar’s governance?

This law marks a pivotal shift for the administration, which, after the 2021 coup, saw Min Aung Hlaing ascend to presidency. Under Myanmar’s constitution, the military influences parliamentary decisions through reserved seats, while the Union Solidarity and Development Party (USDP) gained a significant share in recent elections. The party previously led by Aung San Suu Kyi dissolved, preventing it from future elections.

Reflecting concerns over scam operations in Southeast Asia, especially given the U.S. Treasury’s recent designation of the Karen National Army (KNA) as a criminal entity, the legislation seeks to curb regional crime. The U.S. alleges the KNA, which operates near the Thai border, has benefited from activities linked to Myanmar’s military, a claim the militia denies.

The bill zeroes in on operations employing cryptocurrencies for fraudulent purposes, acknowledging the rising prominence of such assets in crime within the region.

Scam losses across the wider region reached as high as $114.1 billion in 2025, with thousands forced to work in online fraud syndicates and police unable to trace most proceeds, UNODC reports.

According to United Nations data, scam-related losses in Asia and Oceania amassed up to $114.1 billion in 2025. Organized criminal networks compel individuals worldwide to participate in scams, creating challenges for law enforcement.

• Efforts in Cambodia mirror Myanmar’s actions, with life sentences proposed for scam leaders.
• U.S. authorities confiscated $25 million in crypto tied to scams linked to Southeast Asia.
• Laundering proceeds on the blockchain remains a significant hurdle for law enforcement.

Historically, Myanmar ended a 40-year execution hiatus in 2022, only for President Hlaing to commute these to life sentences earlier this year. However, the new bill reintroduces capital punishment for coerced scams involving violence or death, highlighting an intensified crackdown on digital fraud under the current administration.