Myanmar has released a proposed “Anti-Online Scam Bill” in which convicts of online scams who commit acts of violence, torture, illegal arrests, detention, or cruel treatment to compel other people to engage in online scams will be sentenced to death penalties.
According to the proposal, the bill also imposes life sentences on those who operate centers for online and digital currency scams, also known as scam compounds. This bill was tabled on 14 May 2026, and Myanmar’s military-controlled parliament is expected to meet during the first week of June. According to reports, the proposed bill follows an increasing trend of cooperation between Myanmar and China in cracking down on scam rings that operate across their borders.
Myanmar proposes strict penalties for crypto criminals
In February 2026, the Supreme People’s Court of China reported that two major scam rings from Myanmar – the Ming and Bai families, considered among the four major families based in northern Myanmar – had been dismantled. Chinese courts handed down life sentences or even heavier punishments for 39 people, with 16 sentenced to death. Eleven members of the Ming family were hanged to death on 29 January 2026 after their conviction in September 2025 in Wenzhou.
By the end of last year, Chinese courts had handled more than 27,000 cases related to telecommunications fraud in northern Myanmar, with over 41,000 repatriated perpetrators convicted. In addition, Myanmar had arrested and turned over suspected scam workers and their victims to the Chinese government, with the transfer process occurring at the Mae Sot airport in Thailand in February 2025.
The draft law is part of Myanmar’s attempt to tackle domestic instability and foreign criticism of the country’s role as a base for scammers across Southeast Asia. As it stands, the Anti-Online Scam Bill will place the strictest punishments ever seen in the region. Before 2021, Myanmar also had lax regulations for gambling and online gambling in areas bordering Thailand and China.
Developments such as the Shwe Kokko Yatai New City, established in 2017 as a mixed-use commercial area, were located on the Thai-Myanmar border. Areas that were once known for gambling soon changed to cyber fraud due to border closures during the pandemic. Strongholds were created or enlarged in Shwe Kokko, KK Park close to Myawaddy, Laukkai in Kokang, and Mong La. Such fortified areas served as business centers with thick walls, armed security, and Starlink satellite internet connectivity.
According to the UN report, at least 120,000 individuals had been subjected to online fraud in Myanmar. The Chinese syndicates, referred to by some as “the four major families,” controlled many of these compounds, with the Laukkai syndicate alone earning more than $1.5 billion until its disbandment. The trafficked laborers, tricked using false job postings, are transported through China, Africa, South Asia, and Southeast Asia.
