Myanmar approves death, life terms for scam labor, crypto fraud

Myanmar’s military government has approved amendments to criminal penalties that impose the death penalty for people found guilty of forcing others into scam operations and life imprisonment for those convicted of cryptocurrency fraud, officials announced this week.

Under the amendments, individuals proven to have recruited, transported or compelled victims to work in so-called scam factories will face the death penalty. Organizers, directors or operators of cryptocurrency fraud schemes — described by the government as systematic efforts to solicit funds, misrepresent investments or misappropriate digital assets — will face life imprisonment. The government has not published full implementing regulations or precise legal definitions that will guide court application of the new penalties.

Authorities framed the measures as a response to two problems they identified: trafficking and coercion into online fraud operations, and schemes that use digital assets to defraud investors and launder proceeds. A government statement said the changes aim to deter organizers, financiers and middlemen who profit from forced labor and large-scale online fraud.

Reports of human trafficking tied to online fraud in parts of Southeast Asia describe victims pressured to make bogus sales calls, operate fake trading platforms or create fraudulent social media profiles. The government described scam operations as organized networks that recruit and coerce people into such work.

Legal specialists note that formal implementation of the amendments typically requires publication in an official gazette and guidance for prosecutors and judges. It is unclear when the new rules will take effect, how existing courts will apply them or what evidentiary standards will be used to prove coercion in scam labor cases and intent in complex crypto fraud matters.

Authorities have not released figures on prosecutions expected under the new rules or on investigations already under way. International human rights organizations have urged Myanmar to ensure criminal justice measures respect due process and include protections for victims. Government statements on the amendments focused on preventing exploitation and financial loss and provided limited detail on enforcement plans or victim-assistance programs.