Myanmar’s military-backed parliament has passed the Anti-Online Scam Bill, marking the first law enacted under President Min Aung Hlaing’s administration. The legislation introduces severe penalties, including the death sentence for those found guilty of using violence or unlawful detention to force others into operating online scam centers. If such actions result in the victim’s death, the punishment will be execution, according to a bill draft released in May.
Strict penalties for digital currency scams
The draft sets the maximum penalty for running an online scam operation or committing digital currency scams, including activities tied to cryptocurrencies, as life imprisonment. Offenses involving coercion or violence carry sentences ranging from ten years to life. Lower house lawmaker Aye Chan indicated that the death penalty provisions remain in the final bill, though the complete text has not been made public.
The law is a significant move for the new government led by Min Aung Hlaing, who assumed the role of civilian president following the 2021 coup. Under Myanmar’s constitution, the military retains a quarter of parliamentary seats, while the Union Solidarity and Development Party (USDP) secured 339 of the remaining seats in recent elections. The previously dominant party led by Aung San Suu Kyi was dissolved and barred from contesting.
The new legislation reflects growing international concern over scam operations in Southeast Asia. In May 2025, the U.S. Treasury designated the Karen National Army (KNA), previously known as the Karen Border Guard Force, as a transnational criminal organization. U.S. authorities accused the KNA of controlling territories on the Thai border harboring cyber scam syndicates, and claimed the group has profited from links to Myanmar’s military. The KNA, a militia group active along Myanmar’s eastern border, has denied any connection to scam operations.
For digital currency scams, the law targets operations that use cryptocurrency as a tool for fraud, reflecting the increasing role of crypto assets in regional criminal activity.
Mini dictionary: Karen National Army (KNA) – An armed ethnic militia in eastern Myanmar, formerly known as the Karen Border Guard Force. The KNA has been accused by international authorities of facilitating criminal activities, though it denies involvement in scams.
Regional impact and international action
Scam losses in East Asia, Southeast Asia, and Oceania reached between $88.3 billion and $114.1 billion in 2025, according to the United Nations Office on Drugs and Crime (UNODC). These operations involve syndicates that run online scam centers, often compelling individuals from over 80 countries to work under threat of force or detention.
| Region | Estimated Scam Losses (2025) |
|---|---|
| East Asia, Southeast Asia, Oceania | $88.3B – $114.1B |
Cambodia has also advanced legislation imposing life sentences on leaders of scam compounds, and U.S. prosecutors recently seized $25 million in cryptocurrency linked to scams routed through the region. The UNODC noted that law enforcement agencies in Southeast Asia still face significant challenges in tracing illicit funds on blockchain networks.
Scam losses across the wider region reached as high as $114.1 billion in 2025, with thousands forced to work in online fraud syndicates and police unable to trace most proceeds, UNODC reports.
Syndicate restructuring and ongoing challenges
The United Nations has detailed a fundamental restructuring of organized crime networks in the region. Groups once rooted in single locations and specialized in individual crimes have merged into transnational syndicates, trading services such as money laundering, fraud, and human trafficking across borders.
Myanmar resumed executions in 2022 after a long hiatus, carrying out the country’s first hangings in over four decades. Although President Min Aung Hlaing commuted all death sentences to life imprisonment in April, his government has now reinstated capital punishment for violent coerced scam cases through the newly adopted Anti-Online Scam Bill.
The Anti-Online Scam Bill is the first law enacted under President Min Aung Hlaing, introducing severe penalties for those running or facilitating online scam operations, especially if coercion or fatal violence is involved.
