The latest report by Myanmar Times stated that the Central Bank of Myanmar (CBM) cautioned investors not to invest in crypto assets due to its perilous state.
A private bank Burmese Apex Bank also issued a warning in order to protect investors from investing in cryptocurrency due to its unstable nature.
Earlier, Central Bank of Myanmar issued a notification and stated that cryptocurrency is not recognized as legal currency and that transaction of cryptocurrency by any financial institutions of the country is not allowed.
The financial specialists of the country are of the view that in 2017 when the cryptocurrency got attention in the media during their famous bull market; since then retail investments in digital currency have been on the rise.
Bitcoin experienced its highest value at nineteen thousand dollars ($19,500), and similar bullish traction was later followed in alt coin. However, fraud crypto projects and exit scam exploited the situation, and many investors lost their money.
The report further stated that due to lack of exchange platforms and research organizations in the country, it has become even more difficult for the regulatory authorities to keep track of daily transactions of the cryptocurrency.
CBM’s latest announcement regarding the cryptocurrency has added uncertainty to digital currency’s future. Even though the Apex bank has yet not put a complete ban on the trading of digital currency. However, financial institutions of the country are not allowed to entertain transactions of cryptocurrency of any sort. This move could prove to restrain Myanmar’s crypto ecosystem in the future.
Presently, seventeen (17) countries of the world, including USA, Singapore, Japan, Germany, and Switzerland officially allow transactions in digital currency.
Meanwhile, Hong Kong and Thailand are assessing the risks and benefits of crypto assets and are formulating and drafting regulatory actions accordingly, in order to govern their crypto markets and industries.
A Fintech expert and CEO of “Get Myanmar” U Nyein Chan Soe, however, told Myanmar Times that currently, no law forbids the exchange of cryptocurrency and it is yet uncertain that cryptocurrency trading is illegal.