Myanmar Enacts Death Penalty for Forced Scam Labor, Life Sentences for Crypto Fraud

On July 28, 2026, Myanmar's military-backed parliament approved the Anti-Online Scam Bill, the first legislation under the government led by Min Aung Hlaing. This law permits the death penalty for individuals who use violence or unlawful detention to force others into running online scam operations. If coercion results in the victim’s death, the death penalty is mandated.

The draft law, which was introduced in May, initially proposed life imprisonment for those who manage scam centers or engage in digital currency fraud. It also includes penalties of 10 years to life for coercion-related offenses. Aye Chan, a member of the lower house, confirmed that “the important parts of the bill remained the same,” providing the necessary legal framework to address increasing reports of scam operations.

This move comes against a backdrop of significant financial losses linked to scams in the region, which the United Nations estimates reached between $88.3 billion and $114.1 billion in 2025. This alarming trend has prompted various governments in the region, including Cambodia, to advance their own legislation tackling such criminal activities.

The U.S. Treasury previously sanctioned the Karen National Army for its alleged connections with cyber scam syndicates operating from territories within Myanmar, highlighting the broader implications of organized crime linked to the military. The new legislative measures present a rigorous approach to combating online scams, responding to both domestic and international pressure to enhance regulatory oversight against financial crimes.

It remains to be seen how effective this law will be in reducing scam activities and protecting victims. Observers are likely to monitor the implementation of these laws and any resulting impact on scam operations in Southeast Asia.