Myanmar: Note on New Draft Cyber Security Law
there is no need to expand this protection. In any case, Article 35(f) not only signally lacks the
protections that are required to make defamation laws legitimate under international law,
but it also provides for criminal penalties for breach, again contrary to international law.9
Financial Measures
As noted above, the Central Committee is now empowered, in coordination with the Central
Bank of Myanmar, to set out policy, rules, regulations and directives for online financial
services. Current Article 94 (formerly Article 66) makes it an offence to provide online
financial services without being legally registered in Myanmar and absent permission from
the Central Bank of Myanmar, subject to imprisonment of between one and three years
(formerly just up to three years) and/or a fine of up to ten million MMK (approximately USD
5,300). A new Article 95 specifically creates the offence of buying or selling “illegal currency
such as digital currency, cryptocurrency” online, subject to imprisonment of between six
months and one year and/or a fine of up to 25 million MMK (approximately USD 13,300).
It is not illegitimate for countries to impose reasonable regulations on the provision of
financial services and the use of cryptocurrencies. We are not aware of what sorts of specific
regulations in this area may already have been put in place, although there seems to have
been some debate about whether cryptocurrencies were illegal even before the coup. 10
However, the adoption of the Cyber Security Law in its current form would presumably
clarify that these currencies are illegal. Furthermore, with the increasingly strict rules being
put in place by the military regime governing financial transactions in general, including in
relation to foreign currency,11 the aim of these measures is clearly to extend control by the
regime over all aspects of civic life in a manner which represents a clear breach of the right
to freedom of association.
Youth Assembly, Karen Human Rights Group, Karenni National Youth Organization, Myanmar Centre for
Responsible Business, Myanmar ICT for Development Organization, Myanmar Journalist Network, Myanmar
Media Lawyers’ Network and Progressive Voice, 9 July 2020, paras. 4-7, https://www.lawdemocracy.org/live/joint-submission-to-the-universal-periodic-review-of-myanmar-raises-freedom-ofexpression-concerns/.
9 Formally, there is no specific criminal penalty in the current draft of the Law for breach of Article 35, which
contains all of the content restrictions, including this one, but see the note on this under Offences, below.
10 See, for example, Turner Wright, “Myanmar Central Bank Claims Crypto is Banned, Users Disagree”, 22 May
2020, suggesting that while the Central Bank of Myanmar claimed that cryptocurrencies were illegal, others
disputed this. See https://cointelegraph.com/news/myanmar-central-bank-claims-crypto-is-banned-usersdisagree.
11 See Elaine Kurtenback, “Military-led Myanmar seeks to reassure foreign investors”, 21 April 2022,
https://apnews.com/article/business-myanmar-united-nations-embassies-b6166f8a17ddb59dd3967b3ed67cbeb1.
The Centre for Law and Democracy is a non-profit human rights organisation working
internationally to provide legal expertise on foundational rights for democracy.
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