Crypto Regulations in Cambodia
Cambodia has adopted strict cryptocurrency regulations, restricting any of its citizens or businesses from trading Bitcoin and other tokens without first obtaining a license. As of April 2022, the Cambodian authorities have stated that no cryptocurrency company has received the required license.
The National Bank of Cambodia (NBC), along with a few other Cambodian branches of government, announced the regulation back in 2018. Under the law, anyone trading cryptocurrencies without a proper license will be “penalized following applicable laws.”
Source: Buy Bitcoin Worldwide
Cambodia did not have a transparent regulatory regime in effect for cryptocurrency. Though the NBC, the SECC, and the General-Commissariat of the National Police released a statement in June 2018 indicating that each of these authorities may play a role in creating a regulatory scheme in the future, none have yet put forth a regulatory framework.
Source: Tileke
The Cambodian government has not greenlighted the issuing or use of any cryptocurrency in the country, a report has said. The report, which cites a document recently released by the Ministry of Finance and Economics, said it is still illegal to create, distribute, or trade cryptocurrencies in Cambodia.
Source: khmertimeskh
Crypto exchange Binance has signed a memorandum of understanding with the Securities and Exchange Regulator of Cambodia (SERC), according to a June 30 announcement.
Binance and SERC will work together to develop digital assets regulations in the country. SERC is looking to leverage Binance’s technical expertise and experience in the field to develop its own legal framework for the digital asset market.
Cryptocurrencies are not regulated in Cambodia, and any unlicensed activity involving these digital assets is highly prohibited. The partnership could prove pivotal for the South Asian country, where any crypto-linked activity has been deemed illegal since 2018.
Source:
Crypto platform Binance has partnered with the Securities and Exchange Regulator of Cambodia (SERC) to impose comprehensive rules on the domestic digital asset sector.
The exchange informed that its partnership with the SERC will follow three main key targets. First, both parties will share technical expertise in cryptocurrency operations. Second, they will support digital asset businesses in the Southeast Asian nation and work towards designing an appropriate regulatory framework for the local industry. Lastly, Binance vowed to launch training courses and introduce cryptocurrencies and their merits to more Cambodians.
Source: The Paypers
The National Bank of Cambodia (NBC), has “asked banks in Cambodia not to allow people to conduct transactions with cryptocurrencies
Source: Wikipedia
The National Bank of Cambodia (NBC) “signed an agreement with a Japanese firm . . . to develop a blockchain-based project for its own internal use, which would track interbank lending and transactions” in April 2017. However, it only addresses interbank transactions.
As early as 2016, the National Bank of Cambodia established a working group to explore the use of blockchain and distributed ledger technology (“DLT”) in payment systems. By early 2017, the group had developed use-cases under the auspices of Project Bakong. The project’s name, Bakong, derives from a prominent Khmer temple from the 9th century whose architecture was replicated to build Cambodian Independent Monument in 1958.
Nonetheless, currently, the legal status of virtual currencies in Cambodia remains ambiguous.
Source: Freeman Law
The largest cryptocurrency exchange platform, Binance, is reportedly involved in developing regulations regarding digital assets in Cambodia. This news was confirmed by the signing of an agreement with the Securities and Exchange Regulator of Cambodia (SERC). The deal was announced on 30 June.
Binance and SERC will work together to develop regulations regarding digital assets in the country. SERC wants to use Binance’s technical expertise and experience in the crypto world to develop a legal framework for the digital asset market.
Previously, cryptocurrencies were not regulated in Cambodia, and any unauthorized activity involving this digital asset was strictly prohibited there. This partnership is very important and influential for countries in South Asia because since 2018 activities regarding crypto are prohibited.
Source: VOI
Some recent initiatives deserve mention in connection with Cambodia’s evolution as a fintech ecosystem. First, in November 2019, the Cambodian government promulgated the Law on e-Commerce, which dovetails with a new Consumer Protection Law (introduced simultaneously), providing greater certainty to fintech businesses involved in payment systems and the like. Then, in May 2020, the National Bank of Cambodia (“NBC”) announced the launch of Project Bakong which is a ‘next generation’ blockchain-driven payment system that promotes access to banking services through user-friendly apps that run on iOS and Android systems. Users can open a Bakong account and make payments even if they lack a traditional bank account. Powered by a platform developed by Soramitsu of Japan, Bakong has evolved into a Central Bank Digital Currency (“CBDC”) that serves as an ultra-efficient bank settlement system that does away with physical transfers of cash between banks.
Source: MP
Previously, the National Bank of Cambodia, the Securities and Exchange Commission of Cambodia, and the General-Commissariat of National Police in Cambodia released a joint statement providing that “the propagation, circulation, buying, selling, trading and settlement of Crypto Currencies without obtaining a license from competent authorities are illegal activities.” The joint statement further warned that:
The propagation, circulation, buying, selling, trading, and settlement of Crypto Currencies such as KH Coin, Suncoin, K coin, One-coin, Forex coin, and other similar Crypto Currencies which are not regulated by competent authorities will cause potential risks to the public and society as a whole as the following:
– The issuance of Cryptocurrencies is not backed by collateral
– Investment in Crypto Currencies may incur losses due to the volatility of its face value.
– Facing cybercrime and losses of funds due to the system being hacked
– There is no customer protection mechanism and the user of Crypto Currencies is an anonymous person who has no identity or historical records, which may cause risks of money laundering and financing of terrorism.
In this stage, the competent authorities appeal that the public is cautious of the propagation to mobilize funds and the operations of buying, selling, trading, and settlement of CryptoCurrencies without obtaining a license from competent authorities.
Any person or legal entity that propagates to mobilize funds, buys, sells, trades, or settles Crypto Currencies without obtaining a license from competent authorities shall be penalized in accordance with applicable laws.
Source: Freeman Law
Authorities in Cambodia have announced that domestic investors are now required to obtain a license in order to purchase, sell or trade cryptocurrencies – activities that would be otherwise regarded as illegal.
In a joint statement signed on May 11 and published on Tuesday, the National Bank of Cambodia (NBC), the Securities and Exchange Commission of Cambodia, and the General Commissariat of National Police said that the decision was made after observing the growth in cryptocurrency trading in the country.
Source: Coindesk
Cambodia’s rapid progress is often chalked up to macroeconomic stability reflected by low inflation, increasing international reserves, modest fiscal deficits, low public debt, and well-framed economic policies.
Accordingly, most fintech business operators in Cambodia are homegrown, which is a double-edged sword: having so few foreign competitors makes it easier for local entrepreneurs to compete but at the same time, without an influx of foreign competitors, there is less pressure on the Cambodian government to roll out new policies and regulations that adequately support fintech and safeguard consumers’ rights. This is what we are seeing with mobile payments: local demand for digital solutions is making it easier for startups and SMEs to access cheaper and flexible capital. However, because the only regulatory sandbox that exists in Cambodia is for mobile payments, operators have been hesitant to develop services that cut across regulated sectors until new regulations permitting this are introduced. As regulatory support for the industry grows in Cambodia, it is likely that the necessary legislative changes will inevitably occur.
Source: MP
