A New Zealand man facing jail in Myanmar says he didn't realise the trouble putting headphones on an image of Buddha would cause.

VGastro manager Philip Blackwood was arrested along with two other local men, after posting the image on the venue's Facebook page earlier this month.

He has appeared in court stating he was not guilty and honestly didn't realise the problems it would cause.

There has been an upsurge in Buddhist nationalist sentiment in Myanmar, which can punish anything which insults any religion by a maximum of two years in jail.

The three men's lawyer told media outside court he's been threatened for taking on the case.