In Loikaw, Karenni State, residents report that the military council has intensified inspections of money transfers made via Kpay at city entry and exit checkpoints as well as at shops offering online money transfer and withdrawal services.

“We have to rely on Kpay and WavePay because there are no functioning banks here. If they start investigating these too, how can we manage?” said a local resident from Loikaw.

Back in March, the military junta tightened inspections at the city. Not only CDM (Civil Disobedience Movement) participants but also some non-CDM civil servants were arrested at checkpoints, according to local sources.

“Ever since people helping revolutionary forces through Kpay were caught, they’ve started tracking those who received transfers from them,” said a local woman from Loikaw.

Currently, with many residents having returned to live in Loikaw, locals say some individuals have been arrested after their Kpay accounts were checked at city entry checkpoints.

“No one knows exactly how they investigate. Sometimes, they just let one go and arrest the other. Other times, if you apologize and settle with money, you might get away, but sometimes that doesn’t work either. If you’re entering or leaving Loikaw, it’s best to thoroughly clean your phone,” a local driver explained.

Travelers along the Union Highway from Hsihseng, southern Shan State to Loikaw also report increasingly strict inspections at military checkpoints. Due to such crackdowns, CDM participants and people whose Kpay accounts have been suspended are reportedly fearful of returning to their hometown.