(BlockBar) The Central Bank of Myanmar (CBM) had issued a warning against engaging in cryptocurrency activities. And now it is determined to restraint the growth of local cryptocurrency industry. The CBM said that it does recognize cryptos as legal currencies and warned financial institutions against facilitating transactions involving digital assets, as reported by the Myanmar Times on May 20.
Even though no concrete information is available on this but Myanmar’s experts in the financial sector claim that investments in the local cryptocurrency sector are on the rise. It is to be noticed that this is different from other countries where crypto exchanges publish their daily volume transaction data.
The local residents who have access to online payments are buying the new digital asset class. Even the local exchanges are enhancing their marketing efforts on social media. Now the recent announcement made by the central bank has left the future of the crypto industry in Myanmar hanging in the balance. There is a possibility that the cryptocurrency industry will continue to grow in the shadows as no concrete and tangible rules are put by the CBM as yet to govern the industry. It is not yet illegal to deal with cryptocurrencies in the country, says a Fintech expert. He says:
“As there is no official law, it can’t be said that trading in digital currencies is illegal,” said Get Myanmar CEO and fintech expert U Nyein Chan Soe Win. He reckons that the central bank should first study the impact of the industry on the local economy and their compatibility with the current policies before declaring them illegal.
Some of the world’s major economies are more liberal about the transaction of cryptocurrency. These countries include the U.S., Germany, Switzerland, Japan, and Hong Kong etc. They have managed to concretise and pass the laws that combat money laundering and protect users from fraud.
Fintech experts believe that the Southeast Asian country has the potential to grow the cypto industry, if we educate the nation about cryptocurrency technology, security, and functionality. A local university – Manchester Metropolitan University – is launching a fintech course that will attract the best minds in the finance and technology sectors.