Cambodia has blocked access to 16 cryptocurrency exchange websites, including major platforms like Binance, Coinbase, and OKX, in an effort to regulate the digital asset market. The Telecommunication Regulator of Cambodia (TRC) enforced the action, targeting platforms without proper licenses from the Securities and Exchange Regulator of Cambodia (SERC).
The TRC, in a directive signed by acting chairman Srun Kimsann, restricted access to 102 domains, focusing mainly on crypto exchanges and online gambling sites. While website access is blocked, mobile apps for these platforms remain functional.
Two Entities Authorized in Sandbox
Cambodia’s cautious approach to cryptocurrency is evident, as only two entities are authorized to operate under the SERC’s FinTechRegulatory Sandbox program. These licensed platforms are prohibited from facilitating the exchange of digital assets for fiat currencies, including the Cambodian riel and US dollars.
This regulatory action comes despite Binance’s efforts in Cambodia. In 2022, Binance signed a memorandum of understanding with the SERC to assist in developing digital currency regulations. The platform also collaborated with the Royal Group, a major Cambodian conglomerate, and trained Interior Ministry officials to detect crypto-related crimes.
???????? LATEST: Cambodia blocks access to 16 crypto exchange websites, including Binance, Coinbase, and OKX. pic.twitter.com/PNZK7Gi1dF
— Cointelegraph (@Cointelegraph) December 3, 2024
Cambodia Tackles Crypto-Related Illicit Activities
The country’s crypto crackdown is part of wider concerns about its role in global crypto scams and cybercrime. The UN Office on Drugs & Crime has identified Cambodia as a hotspot for illicit activities, such as money laundering and dark web transactions facilitated by cryptocurrencies.
Criminal syndicates, often linked to Chinese gambling and fraud networks, have trafficked around 30,000 individuals to Cambodia and Myanmar, coercing them into creating fake profiles and running scams, including fraudulent cryptocurrency operations.
These activities are often cantered in Sihanoukville, a city known for illegal online gambling operations. Despite a 2020 ban on such activities, remnants of the underground economy remain.
Crypto Scams Raise Global Concerns
A recent Chainalysis report highlighted billions of dollars in “pig butchering” scams connected to Huione Guarantee, raising global concerns about Cambodia’s regulatory and enforcement capabilities regarding cryptocurrency.
Despite its regulatory measures, Cambodia remains an active participant in the global cryptocurrency market. It ranks in the top 20 for retail crypto usage per capita, with 70% of transactions occurring via centralized exchanges. Statista forecasts the country’s digital assets market will generate $8 million in revenue in 2024, though growth is expected to slow by 2025.
This article was written by Tareq Sikder at www.financemagnates.com.
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