Myanmar’s Central Bank Urges Citizens Not To Partake In Bitcoin Or Crypto After Recent Scams
Myanmar Recommends Citizens Not To Use Cryptocurrencies After Several Scams
The Central Bank of Myanmar is warning users about virtual currencies after a series of scams that took place in the market. The information was released by the news outlet The Irrawaddy on May 3. One of the reasons the Central Bank of Myanmar is worried about virtual currencies is due to the reason that inexperienced users could lose money while trading these digital assets.
Myanmar Warns Crypto Investors About Dealing With Virtual Currencies
According to the news site, the central bank of the country informed that they have been receiving reports about several scams that targetted users that did not know about how to deal with digital assets. The monetary authority of the country informed that Bitcoin (BTC), Litecoin (LTC) and Ether (ETH) can be traded in the country using Facebook profiles and other sites.
At the same time, the central bank explained that virtual currencies are not authorized in the country, but there is no legal framework to regulate them or ban them. This is why users can still deal with virtual currencies as desired.
During a conversation with The Irrawaddy, U Than Lwin, a former deputy governor at the central bank, explained that the lack of protection for consumers and the difficulty of taking legal actions against these digital assets are some of the reasons why users should avoid dealing with digital assets.
On the matter, U Than Lwin commented:
“The price [of virtual currencies] is unstable all the time. Trading cryptocurrencies could result in losing everything you invested in them. It’s like gambling.”
This is not the first time that Myanmar warns its citizens about the dangers of dealing with digital assets. Back in 2018, the Ministry of Home Affairs informed that there were users in rural areas targeted by crypto fraudsters. Although they do not support the expansion of digital assets, they are working and embracing blockchain technology for different use cases.
South Korea and China decided to ban Initial Coin Offerings (ICOs) back in 2017 with the intention of avoiding scammers and fraudulent projects to gather funds from their citizens.