Myanmar has proposed a new law that would allow the death penalty for people who violently force others to work in online scam compounds.

The proposal is the latest sign of how deeply rooted scam-center operations have become in Myanmar, where years of conflict and instability have helped organized crime networks flourish.

What happened?

According to a report from the Manila Times, authorities in Myanmar published an "Anti-Online Scam Bill" that would impose the death sentence on anyone who uses "violence, torture, unlawful arrest and detention, or cruel treatment" to force someone to carry out online scams.

Under the draft law, people who operate online scam centers — as well as those involved in digital-currency scams — could also face a maximum sentence of life in prison.

The bill is expected to go before Myanmar's military-backed parliament when it reconvenes in the first week of June.

The measure follows years of reports that scam compounds in Myanmar have trapped and abused workers, including foreigners who say they were trafficked to the sites and tortured by operators. The compounds have been linked to romance scams and fake crypto-investment schemes targeting internet users worldwide.

The scale of the problem is enormous. In the United States alone, victims lost more than $20 billion to these kinds of scams last year, according to the FBI.

The issue has also become a regional flashpoint. Analysts say neighboring China has grown increasingly frustrated because its citizens have reportedly appeared throughout scam-center networks inside Myanmar — as founders, workers, and victims.

Why is this concerning?

The bill highlights two overlapping crises: human trafficking and the global expansion of online financial fraud.

Myanmar's civil war, which followed the military coup on Feb. 1, 2021, has created conditions that monitors say make it easier for criminal groups to operate from heavily guarded compounds.

The human toll is severe on its own. But the damage does not end there.

These scam centers have become a major engine of cross-border financial crime, targeting people through fake relationships and aggressive pitches for bogus crypto investments. Because digital assets can move quickly across borders and some transfers are difficult to reverse, scammers have often used crypto to make recovery harder for victims.

According to The Manila Times, this bill is the first piece of legislation from the new government led by coup leader Min Aung Hlaing, who became the civilian president last month. Critics have dismissed the leadership reshuffle and other recent concessions as an attempt to rebrand military rule rather than deliver meaningful reform.

What's being done about online scam compounds?

Myanmar's proposed law is one of the clearest signs yet that authorities are trying to respond to the country's scam-center crisis.

For everyday people, the most effective protection is still prevention. Common warning signs include unsolicited romantic messages, promises of guaranteed investment returns, urgent efforts to move conversations off major platforms, and pressure to buy crypto quickly. Experts also generally advise verifying identities independently and being cautious of anyone requesting money or investment transfers through messaging apps.

For the broader crypto sector, the episode is another reminder that trust and transparency matter. Stronger consumer education, tighter safeguards at exchanges, and better reporting of suspicious transactions could help limit abuse while allowing legitimate uses of the technology to continue developing.

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