Myanmar proposes life imprisonment for crypto scam operators

Myanmar’s military published a draft bill on May 14 proposing life in prison for crypto scam operators.

The draft legislation, called the Anti-Online Scam Bill, states that anyone convicted of “digital currency fraud” or running an online scam center faces a sentence ranging from ten years to life in prison.

The bill permits capital punishment for operators who use “violence, torture, unlawful arrest and detention, or cruel treatment against another person for the purpose of forcing them to commit online scams.”

Military bill targets digital currency fraud with maximum sentences

Myanmar’s military-backed parliament, which analysts describe as a rubber-stamp legislature, is next scheduled to sit in the first week of June.

The bill is the first piece of legislation introduced by the new government led by coup leader Min Aung Hlaing, who assumed the civilian presidency last month.

Internet fraud compounds have become a major regional crisis. The FBI reported that cryptocurrency-related fraud losses in the United States reached $11.4 billion in its most recent crime report, with more than half of all internet crime losses tied to crypto schemes. Many of the networks behind those losses operate out of Southeast Asian compounds.

US authorities have escalated enforcement pressure. The DOJ froze $701 million in crypto tied to global scam networks in April 2026, naming Myanmar and Cambodia-based compounds that rely on trafficked or coerced workers to execute large-scale fraud.

The scale of Myanmar’s operations is well-documented. Chainalysis found that romance scammers operating from the KK Park compound in Myawaddy alone siphoned nearly $100 million in crypto from global victims between 2022 and 2024.

The bill is part of a broader regional shift. Cambodia adopted anti-fraud legislation in March 2026 with prison sentences up to 10 years for ringleaders. Singapore plans to launch a dedicated Cyber Command enforcement unit in July 2026.