The National Bank of Cambodia (NBC) has allowed commercial banks and payment institutions to offer services related to stable cryptocurrencies. This marks the first time the NBC has granted such approval. The directive was issued on December 26 and reported on December 27 by the Phnom Penh Post. However, the ban on unbacked cryptocurrencies like Bitcoin remains in place.
Cambodia’s Efforts to Regulate Digital Currencies
The new rules aim to regulate digital currency operations and align Cambodia with global financial trends. Institutions must get prior approval from NBC to engage in crypto-to-fiat exchanges, asset transfers, or custody services. They are not permitted to use customers’ crypto assets for personal purposes.
Historically, Cambodia has taken a strict stance against cryptocurrency. Concerns over fraud, money laundering, and illegal activities led to a ban on trading and transactions.
Expert Views on Cryptocurrency in Cambodia
Economic researcher Hong Vanak from the Royal Academy of Cambodia pointed out the challenges of regulating decentralized digital currencies. He noted that tracking and taxing these assets is difficult. While cryptocurrencies provide limited benefits to Cambodia’s economy, Vanak suggested that banks could earn revenue by charging user fees for crypto-related services.
Cambodia Blocks Major Crypto Exchanges
Earlier in December, Cambodia restricted access to 16 crypto exchange websites. The list included major platforms like Binance, Coinbase, and OKX. This move is part of the government’s ongoing effort to regulate digital assets.
Acting TRC chairman Srun Kimsann signed a directive blocking 102 domains, mostly linked to online gambling. Crypto exchanges were included because they lacked licenses from the Securities and Exchange Regulator of Cambodia (SERC).
Although website access is restricted, mobile applications for these platforms remain available. Only two companies currently operate under SERC’s “FinTech Regulatory Sandbox” program. These firms can trade digital assets but cannot exchange them for Cambodian currency or other fiat money.
High Crypto Usage Amid Rising Concerns
Despite strict regulations, Cambodia ranks high globally in retail crypto use per capita. Chainalysis reports that centralized exchanges handle 70% of transactions in the country.
However, crypto-related crimes are a growing concern. The UN Office of Drugs and Crime highlighted the use of cryptocurrencies for money laundering and dark-web activities in Cambodia.
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