NBC Approves Regulated Crypto Assets For Operation In Cambodia
In Brief
The National Bank of Cambodia has allowed commercial banks and payment institutions to offer services involving secured assets and stablecoins.
The National Bank of Cambodia (NBC) has issued a new directive allowing commercial banks and payment institutions to offer services involving cryptocurrencies, including stablecoins or those backed by assets. However, unbacked cryptocurrencies, such as Bitcoin, remain prohibited.
This move aims to regulate the use of digital currencies in the country, reflecting Cambodia’s efforts to align with global financial trends. Under the new directive, any commercial bank or payment institution wishing to provide cryptocurrency-related services must first obtain approval from the NBC.
Authorized institutions will be permitted to engage in activities such as converting cryptocurrency to fiat currencies and vice versa, transferring cryptocurrency assets between accounts, and offering custody services. However, these institutions are explicitly prohibited from using their clients’ cryptocurrency assets for their own purposes.
Cambodia Blocks Access To Major Crypto Exchanges Amid Ongoing Efforts To Regulate Digital Asset Market
Historically, Cambodia has prohibited cryptocurrency transactions and trading due to concerns about high risks, such as money laundering, fraud, and involvement in illicit activities within the black market.
Earlier this month, the Cambodian authorities blocked access to 16 cryptocurrency exchange websites, including well-known platforms like Binance, Coinbase, and OKX, as part of ongoing efforts to regulate the digital asset market.
This action followed a directive issued by the Telecommunication Regulator of Cambodia (TRC), which restricted access to 102 websites, primarily targeting online gambling platforms. Cryptocurrency exchange websites were included in the restriction due to their lack of licensing from the Securities and Exchange Regulator of Cambodia (SERC). While access to these websites has been blocked, mobile applications for these platforms are still accessible.
Despite these measures, Cambodia continues to be a global leader in retail cryptocurrency use per capita, according to data from analytics firm Chainalysis. Centralized exchanges account for 70% of cryptocurrency transactions in the country.
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About The Author
Alisa, a dedicated journalist at the MPost, specializes in cryptocurrency, zero-knowledge proofs, investments, and the expansive realm of Web3. With a keen eye for emerging trends and technologies, she delivers comprehensive coverage to inform and engage readers in the ever-evolving landscape of digital finance.
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Alisa, a dedicated journalist at the MPost, specializes in cryptocurrency, zero-knowledge proofs, investments, and the expansive realm of Web3. With a keen eye for emerging trends and technologies, she delivers comprehensive coverage to inform and engage readers in the ever-evolving landscape of digital finance.
