YANGON: Is Myanmar ready for cryptocurrency?

Cryptocurrencies are digital currencies that has no physical form. Unlike cash, they have decentralised control and does not require a central bank or federal reserve. Blockchain technology is typically employed, under which all transactions are recorded on an encrypted public ledger. The first and most popular cryptocurrency is Bitcoin, launched in January 2009. Bitcoin has a limited supply like gold and its value is driven by market principles and consensus.

Overall, the cryptocurrency industry is growing but is still struggling to achieve mass market usage.

.

There is no regulatory frame work for digital coins in Myanmar. The Central Bank of Myanmar does not have any regulation, permission or restriction regarding the trading of cryptocurrencies.

While the US security watchdog has warned coins issued in initial coin offerings could be regarded as securities and subject to relevant legislation, the Securities and Exchange Commission of Myanmar has yet to intervene on the issue thus far.

Last year, the Ministry of Home Affairs warned against trading in cryptocurrencies including Bitcoin, after a wave of scams was reported in the media.

Lawyer Nishant Choudhary, DFDL’s head of banking and finance practice, said it may take a while before Myanmar formally opens up the cryptocurrency market.

.