Myanmar introduces the death penalty for crypto fraud: a new law against scam centers
The military-backed parliament of Myanmar has officially approved the Anti-Online Scam Bill, aimed at combating online fraud and cryptocurrency scam centers. The document was adopted on July 28 at a joint session of both houses in Naypyidaw. This decision marks a tightening of measures against the digital slavery industry, which has flourished in the country amid the civil war.
Death Penalty as a Last Resort
A key provision of the law is the retention of the death penalty for actions resulting in the death of a victim. According to the May draft of the bill, penalties ranging from 10 years' imprisonment to life imprisonment are stipulated for violence, torture, illegal detention, or cruel treatment aimed at coercing individuals into online fraud. For operators of scam centers and individuals convicted of digital currency fraud, the maximum penalty also reaches life imprisonment.
Cryptocurrency Context and International Pressure
The adoption of the law is only part of a larger problem. In September 2025, the U.S. Treasury imposed sanctions on nine entities in Myanmar and ten in Cambodia involved in organizing cryptocurrency fraud schemes. One of the most notorious centers remains KK Park, from which nearly 700 people fled in October after a military raid, crossing the Moei River into Thailand.
Despite government efforts to combat this phenomenon, including shutting down border internet access, the construction of scam centers has continued. Investigations have shown that fraudsters have begun to widely use Starlink satellite internet to bypass blocks. In May 2026, the FBI announced the largest operation against such networks, seizing over 127,000 BTC (approximately $8 billion) and freeing about 2,000 people.
My Analysis
The adoption of the death penalty law is undoubtedly a high-profile political move, but its effectiveness is questionable. The problem of scam centers in Myanmar has deep roots: it is fueled by armed conflict, corruption, and economic isolation. Until these systemic issues are resolved, any penalties, even the harshest, risk remaining merely a tool for combating low-level perpetrators rather than the organizers, who often have ties to military elites. The cryptocurrency market, unfortunately, remains an ideal means for them to launder funds.