Myanmar is not yet ready to embrace the wave, at least for now, according to a statement by the country’s Central Bank. According to reports from local media, the bank does not recognize the digital currency as legal tender. Further reporting indicates that the institution deems as a potential risk, especially on the consumer’s side.
The proliferation of scams to blame for the warning
On May 2, the Central Bank of Myanmar (CBM) told Burmese that it is the only institution with the sole mandate to issue and supervise domestic currency. Of course, crypto is not meant to be a national currency or the like. In fact, the allure of crypto is that it is not centralized. The sentiments came on the heels of a number of ICO scams that targeted inexperienced people via the internet. As per the institution, some unscrupulous individuals and entities were selling crypto related programs such as ICOs, through Facebook and suspect websites.
According to the institution, do not enjoy any legal backing in the country. Therefore, any activities based on digital currencies are risky since consumers do not have any protection from fraud and other scams.
No formal systems around the crypto narrative
An ex-CBM deputy governor, U Than Lwin, told a local media house that crypto carries three significant risks. One, the volatility in the crypto markets may be overwhelming. A possible example of such volatility is the fact that lost 80% of its value in 2018 alone. Of course, it is since then up over 100% from its lows. Notably, the trend has reversed as the crypto alongside other is in the green for much of the period since April 1.
Secondly, Lwin said that the crypto ecosystem lacks appropriate legal frameworks. As such, it might be impossible to seek legal redress in cases based on crypto fraud, such as ICOs.
Third, the lack of a proper legal framework implies that consumers do not have any protection. Unlike the traditional financial system which has systems of checks and balances in place, the cryptosphere does not have any of these, especially in Myanmar.
Lwin emphasized that “Since it is a digital currency without physical form, there are many limits to imposing regulations on it. You won’t get help through legal action. People should be cautious before investing in it.”
The fate of crypto in Myanmar still unknown
The warning notwithstanding, there is no statute in Myanmar which bans crypto trade. It is to say that despite the cautionary statement, Burmese can even punt on the movement on the likes of . To be sure, interested parties can access the sector via various firms that are involved in services and crypto platforms.
As we all know governments are typically scared of what they can’t control. has become as popular because it skips the big payment channels such as banks and it’s almost impossible for governments to confiscate. There is no doubt, is here to stay. Governments will need to come to this conclusion.
Published at Mon, 20 May 2019 23:06:09 +0000
