Myanmar bans cryptocurrencies. Prison sentences of up to one year

The military junta in Myanmar recently drafted a bill seeking to ban the use of digital currencies and virtual private networks (VPNs) in the Southeast Asian country. The bill, which has already been signed by the permanent secretary of the junta for the Ministry of Transport and Communications, Soe Thein, is still the subject of a request for comment until January 28 before being officially adopted.

This new bill aims to digitally shut down Myanmar from the outside world and citizens who disobey the laws would face different penalties, ranging from prison terms of up to one year for trading cryptocurrencies and up to 3 years for use. of VPNs, and fines of up to $ 2,800.

In addition, the bill will require service providers in Myanmar to disclose customer personal information, including name, address, login history and more, any once the government requests it.

This new development comes as a major blow to the country's residents. Since the country suffered a military coup in early February 2020, the newly established Tatmadaw has made every effort to seal the country from any interaction with the outside world, banning Facebook, Instagram, Twitter and other platforms from social media.

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To access these platforms, many in Myanmar have relied on VPNs. Several telecommunications companies had to pack their bags when the junta asked them to disclose their customers' personal data. Recall that in early December 2021, the shadow government of Myanmar had adopted USDT as the country's official currency to circumvent restrictions imposed on its operations.

The adoption, which had come as a development welcomed by the majority of the country's residents, allegedly helped in the fundraising campaign aimed at fighting the current regime of the military junta in Myanmar. However, once adopted, this new bill would also restrict the use of this digital currency, USDT, once again hampering shadow government activities.

While the entire cryptocurrency industry is growing at a dizzying pace, with several large institutional investors entering the space, some countries continued to hold a rigorous stance against the nascent industry. Recently, the Pakistani government revealed that it is still pushing for a total ban on cryptocurrencies and all related activities, including mining and trading. Russia's central bank has also proposed an outright ban on cryptocurrencies, citing volatility and other regulatory concerns.