Myanmar's Central Bank has requested consumers to stop trading Cryptocurrencies due to fear that inexperienced users might lose money, as per the reports shared by Southeast Asian News Outlet The Irrawaddy on May 3.
As per the latest statement of the website, the central bank mentioned that it has obtained reports of some scams targeting all the people who don't have a proper understanding of virtual currencies.
Authorities in Myanmar mentioned by the name Burma mentioned that Bitcoin (BTC), Ether (ETH) and Litecoin (LTC) are being traded in the nation via Facebook profiles and websites.
As per the report, the central bank has mentioned that the use of crypto is unauthorized in Myanmar. But the country hasn't made any kind of mechanisms or legal frameworks which can be implemented to control or block its use.
U Than Lwin, who was the former deputy governor at the central bank stated The Irrawaddy three main reasons why one should not invest in the Cryptocurrencies. This includes volatility of crypto markets, the trouble in taking legal action in cases involved in the currencies, and lack of customer protection. He added:
“The price is unstable all the time. Trading cryptocurrencies could result in losing everything you invested in them. It’s like gambling.”
He further said,
“Since it is a digital currency without physical form, there are many limits to imposing regulations on it. You won’t get help through legal action. People should be very careful before investing in it.”
In 2018, Myanmar's Ministry of Home Affairs has also alerted users against trading in cryptocurrencies along with Bitcoin, after various scams in Myanmar. The ministry mentioned that the coin promoters target people in the rural area who don't have any knowledge about the Crypto market. It stated that Crypto's are unstable and need careful study.
If the government is against crypto trading, it doesn't mean that the whole nation is also avoiding the blockchain, popular tech firms are supporting cryptocurrencies. In the previous month, the central banks of Thailand and Myanmar approved an ETH-based payment system made especially for sending payments between the two nations.