In order to address unregulated markets, Cambodia has implemented a blockade of 16 cryptocurrency websites, including Binance and Coinbase.
The crackdown is a response to concerns regarding cybercrime, money laundering, and crypto schemes in Cambodia.
In order to regulate the rapidly expanding but largely unregulated cryptocurrency market, Cambodia has blocked 16 cryptocurrency exchange websites, including well-known names such as Binance, Coinbase, and OKX. Nevertheless, the websites’ applications continue to function, prompting numerous individuals to query the efficacy of this measure.
The government of Cambodia is facing pressure to rectify its reputation as a hub for cybercrime and crypto-related schemes. The UN Office on Drugs & Crime’s reports indicate that criminal organizations in Cambodia utilize cryptocurrencies for illicit purposes, such as money laundering and dark web transactions.
Additionally, a Chainalysis report identified over $49 billion in crypto transactions associated with Huione Guarantee, a significant entity within the Cambodian conglomerate Huione Group.
On November 20, the Telecommunication Regulator of Cambodia (TRC) issued a directive that prohibited access to 102 websites. The inclusion of Binance and other significant crypto platforms as targets was a surprise to many, as many of the platforms were associated with online wagering.
The TRC clarified that the Securities and Exchange Regulator (SERC) of Cambodia did not issue the necessary licenses to these platforms.
Binance has established partnerships in the country, which include a 2022 agreement with SERC to provide support in the development of crypto regulations. In mid-2023, Binance also conducted training sessions for Interior Ministry officials on the detection of crypto-related crimes.
However, Cambodia’s association with Binance further complicates the situation. Currently, the “FinTech Regulatory Sandbox” program in Cambodia permits the operation of digital asset enterprises by only two companies. Even these licensed organizations are incapable of converting digital assets into local or foreign currencies, which restricts their functionality.
Cambodia continues to be a substantial participant in the global crypto market, despite the repression. It is one of the top 20 countries in terms of retail crypto utilization per capita, with centralized exchanges managing 70% of transactions.
Chengyi Ong, Chainalysis’s chief of Asia-Pacific policy, observed that broad-based restrictions frequently fail in situations where organic demand and practical applications are present.
This sentiment implies that Cambodia’s crypto market may continue to flourish and adapt, despite the implementation of more stringent regulations.
Also Read: The Nike NFT Project will be entirely discontinued by 2025
Wallets