- Cambodia has blocked 16 major cryptocurrency exchanges, including Binance and Coinbase, to regulate the market.
- Retail crypto usage remains high, with centralized exchanges handling 70% of transactions.
- Fraudulent activities, including scams linked to $49 billion in transactions, persist as key concerns.
Cambodia has intensified its efforts to regulate the cryptocurrency sector by blocking 16 major crypto exchange websites, including Coinbase and Binance. This move, part of a broader campaign, comes from the Telecommunication Regulator of Cambodia (TRC), which ordered the block of 102 domains under chairman Srun Kimsann. The crackdown aims to curb unlicensed activities and tighten oversight.
Despite these measures, Cambodia ranks among the top 20 countries for retail crypto usage globally. Reports reveal that centralized exchanges account for 70% of all crypto transactions in the country. However, fraud and criminal misuse of digital currencies remain significant concerns.
Out of numerous exchanges, only two firms have acquired operating licenses under the Securities and Exchange Regulator of Cambodia’s (SERC) “FinTech Regulatory Sandbox” program, launched in 2022. The gap between SERC’s progressive stance and the National Bank of Cambodia’s (NBC) conservative approach to digital assets further complicates the regulatory environment.
Binance, one of the affected platforms, has partnered with SERC to help shape a regulatory framework. A spokesperson stated, “We are closely monitoring the evolving situation.” Despite the crackdown, its mobile apps remain functional, hinting at the limitations of the restrictions.
Cryptocurrency Fraudulent Activities Cast a Shadow
Cryptocurrency-related fraud has drawn intense scrutiny in Cambodia. A prominent case involved the Huione Pay platform, which allegedly processed over $49 billion in transactions linked to scams across Southeast Asia. Criminal groups reportedly use digital currencies for dark-web payments, exacerbating the problem.
The UN Office of Drugs and Crime (UNODC) has highlighted these concerns, urging more robust measures. Yet, Cambodia’s enthusiasm for crypto among retail users shows no signs of waning, signaling a disconnect between regulatory ambitions and market realities.