The arrest of U Kyaw Thura and the sealing off of his assets have sent shockwaves through the gems industry.
The ethnic army, which supports anti-junta fighters, believes the ban aims to cut off its mining taxes; it says it will wait and see how miners react before responding.
Nilar Yoma Gems Co. Ltd. once engaged in jade mining with military-owned MEHL in Sagaing Region but had been inactive for several years.
It is the second deadly landslide in three days in the Kachin State jade-mining hub.
The regime has tried to ban online sales with Chinese buyers to boost its tax revenue.