Key takeaways
- Cambodia has blocked access to 16 cryptocurrency exchange websites, including Binance and Coinbase, due to lack of licenses.
- Despite the restrictions, Cambodia remains one of the leading countries in retail cryptocurrency usage per capita.
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Cambodia has cut off access to the websites of 16 crypto exchanges, including major exchanges like Binance, Coinbase and OKX, as part of the country’s efforts to regulate the crypto market, Nikkei Asia reported on December 3, quoting a spokesperson for the telecommunications regulator. of Cambodia (TRC), which oversees the country’s telecommunications sector.
According to a directive signed by TRC acting president Srun Kimsann, the regulator blocked 102 domains, mainly targeting online gaming sites.
Access to cryptocurrency exchange websites has been restricted due to lack of licenses from the Securities and Exchange Regulator of Cambodia (SERC), the report said. Even if online platforms are blocked, mobile applications remain accessible.
The move comes despite Binance’s existing partnerships in Cambodia, including a 2022 memorandum of understanding with SERC to help develop digital currency regulation and an agreement with the Royal Group, one of Cambodia’s largest conglomerates.
In June 2023, Binance provided training to Interior Ministry officials on detecting crypto-related crimes.
“We are closely monitoring developments,” said Binance spokesperson Lily Lee, emphasizing that Binance was not the only platform affected.
Currently, only two companies have received licenses to operate digital asset businesses under the SERC’s FinTech Regulatory Sandbox program. These licensed entities can trade digital assets but cannot exchange them for Cambodia’s legal tender – the riel and the US dollar – or other fiat currencies.
Despite the restrictions, Cambodia ranks among the top 20 countries in the world for retail cryptocurrency use per capita, according to analytics firm Chainalysis. Centralized exchanges account for 70% of crypto transactions in the country.
“Where there is organic demand and real applications, widespread restrictions on the use of cryptocurrencies are not very effective,” said Chengyi Ong, head of Asia-Pacific policy at Chainalysis.
The country has faced increased scrutiny over crypto-related criminal activities. The United Nations Office on Drugs and Crime has reported that criminal organizations in Cambodia are using crypto for dark web payments and money laundering.
Chainalysis has identified over $49 billion in crypto transactions between 2021 and mid-2024 facilitated by Huione Garantie, a crypto-led marketplace within Cambodian conglomerate Huione Group.
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