Myanmar's military-backed parliament approved the Anti-Online Scam Bill on Tuesday during a combined meeting of the lower and upper houses in Naypyidaw, as announced by Union Parliament Speaker Aung Lin Dwe during a live television broadcast. According to AFP reports, the bill was passed after MPs approved changes to a draft bill, with MP Aye Chan confirming to AFP that the death sentence remained in the approved version with 'not many significant changes' to its important sections. The legislation represents the first law passed by the government of Min Aung Hlaing, who led the 2021 coup and assumed the role of civilian president in April after heavily restricted elections that did not include the detained Nobel laureate Aung San Suu Kyi. Many analysts describe the military-backed parliament as a rubber-stamp legislature, with pro-military MPs sweeping the vote that was widely criticised by Western nations and democracy watchdogs as a sham meant to launder the junta's image. Notably, as one of his first official acts since becoming civilian leader, Min Aung Hlaing commuted all death sentences in a blanket order in April -- a turnaround after his junta had resumed executions following the coup, with by 2022, more than 130 people had been sentenced to death, according to the United Nations.
The legislation targets digital-currency fraud, online scam centres, forced scam labour and financial infrastructure used by fraud networks. As reported by AFP and confirmed by TradingView News, the 63-section draft published in May proposed prison terms of 10 years to life for operating an online scam centre or committing digital currency fraud. For violence, torture, unlawful arrest, detention or cruel treatment used to force scam work, the draft allowed life imprisonment or capital punishment, with the death penalty required when that conduct caused death. The May version specified a maximum penalty of life imprisonment for operators of scam centers and those committing cryptocurrency fraud, as noted by Decrypt. The death penalty provision specifically states that where such abuse kills the victim, 'the death penalty shall be imposed'. The draft bill also featured a maximum sentence of life in prison for those who 'run an online scam centre' and those who 'commit digital currency scams (crypto scams)' as reported by AFP.
The legislation comes as scam operations across East Asia, Southeast Asia and Oceania drove $88.3 billion to $114.1 billion in losses in 2025, according to UNODC estimates. The UN agency reports that people from at least 80 countries were found inside the compounds, highlighting the global nature of these criminal networks. The multibillion-dollar black market attracts many willing employees, but repatriated foreigners have also reported being trafficked to sites in Myanmar and tortured by scam centre operators, as noted by AFP. Chinese-origin syndicates constitute the major organisational force behind the region's cyberscam economy, running industrial-scale scam compounds in border areas and special economic zones in Myanmar, Cambodia and Laos, according to a UNODC report this month. The U.S. Treasury sanctioned the Karen National Army as a transnational criminal organization in May 2025, stating that the militia's territory on the Thai border is home to multiple cyber scam syndicates and has benefited from its connection to Burma's military. The KNA denies involvement in scams. In September 2025, the U.S. Treasury Department imposed sanctions on nine entities in Myanmar and ten in Cambodia for their involvement in fraudulent schemes using cryptocurrencies. This year China -- which reported more than $5 billion in scam losses in the past two years -- has executed at least 15 people convicted of fraud offences linked to Myanmar scam compounds.
The bill arrives as evidence shows Myanmar's scam-centre industry remains active despite regional enforcement efforts. Satellite analysis reviewed by Wired identified at least 25 suspected sites built or expanded around Myawaddy during the first half of 2026. The International Justice Mission noted that fraud groups were responding to raids by dispersing, relocating and using smaller operations. One of the largest centers where internet scammers deceive people through fake investment and romance schemes is KK Park, where nearly 700 people escaped from it after a raid in October, crossing the Moei River into Thailand. Previously, authorities attempted to combat them by cutting off border internet access, but an AFP investigation revealed that the construction of centers continued, with widespread use of Starlink satellite internet for network access. The civil war has seeded instability across Myanmar, creating fertile ground for organised crime groups running transnational scam operations to set up shop in fortified compounds, according to monitors. Crackdowns on established scam hubs, including KK Park and Shwe Kokko in Myanmar near the Thai border, have pushed operators to facilities in Cambodia, noted the UNODC. As AFP reports, Upper house MP Naw Yuzana Wah told AFP that international pressure was spurring Myanmar officials to tackle the scam scourge, with many armed groups and organisations involved in the industry, creating many challenges to address.
The enforcement landscape has intensified with the FBI announcing the seizure of over 127,000 BTC worth approximately $8 billion as part of an international operation against scam centers and related networks in May 2026. Raids were conducted in Asia, Africa, and the Middle East, resulting in nearly 300 arrests and the liberation of about 2,000 individuals. The U.S. Justice Department charged two Chinese nationals in April over an alleged cryptocurrency-investment fraud compound in Burma and announced the restraint of about $700 million in cryptocurrency. Implementation will require financial institutions and telecom companies to build reporting and information-sharing systems. International cooperation will be central because victims, workers, operators, payment routes and digital assets often cross several jurisdictions, with the UN agency warning that police in the region still cannot trace proceeds on-chain. Under pressure from other nations, including the United States and China, the Myanmar government has pledged to crack down on the illicit industry, though monitors say law enforcement raids and arrests have resulted in scam outfits relocating rather than ceasing operations.
