A Southeast Asian country is continuing its tough policy against cryptocurrency platforms as it hinders access to digital asset trading. Cambodian regulatory authorities have imposed an iron fist on cryptocurrency players by blocking access to 16 crypto exchanges, including some of the most popular companies such as Coinbase and Binance.
Cambodia Crypto Crackdown
Cambodian government officials continued their unwavering campaign to end unregulated crypto activities in the country, dealing a major blow to these unlicensed digital asset companies.
Cambodia blocks access to 16 cryptocurrency exchange websites
– Nikkei Asia (@NikkeiAsia) December 3, 2024
Cambodia’s telecommunications regulator (TRC) has suspended 16 bitcoin exchange websites for violating state licensing rules. Among those affected by this government crackdown are executives of companies such as Binance, Coinbase and OKX.
The Cambodian regulatory office has implemented restrictions on these crypto exchanges as they do not have a proper license from the Securities and Exchange Regulator of Cambodia (SERC).
However, only the websites of these platforms are blocked. Investors can still access the crypto company’s mobile apps. Analysts question the effectiveness of the restrictions, as users can still circumvent the government’s decision.
Total crypto market cap as of Dec. 3, 2024 at $3.37 trillion: TradingView.com
Crypto exchanges have been warned
The SERC said the actions against these unlicensed crypto companies are part of the government’s efforts to regulate the growing digital asset market.
State authorities said the government had repeatedly reminded crypto exchanges that they were operating without proper authorization, saying the growing number of such companies already posed a significant threat to the financial ecosystem and posed a risk growing for users.
Analysts have partly blamed the Cambodian government for these thriving unlicensed crypto exchanges, as the Asian country has failed to pass and implement comprehensive laws on cryptocurrency operations.
Therefore, the regulatory void provides an opportunity for local and international crypto players to exploit this weakness.
A scenic view of Cambodia. Image: Travel Inspires
A scenic view of Cambodia. Image: Travel InspiresCambodia’s crypto position
The Southeast Asian country might face challenges in regulating the crypto market, but Cambodia’s position in the global crypto landscape remains unchanged.
Data shows that the country is still among the top 20 countries in retail cryptocurrency adoption per capita. Around 70% of crypto transactions in Cambodia come from centralized exchanges, emphasizing the possible implications of these restrictions.
According to Chainalysis, more than $49 billion in cryptocurrency transactions were facilitated by Huione Garantie between 2021 and mid-2024, raising concerns about potential involvement in illicit activities.
Chengyi Ong, head of strategy at Chainalysis Asia Pacific, said broad restrictions may not work well if there is natural demand and real-world uses.
The government took action after coming under scrutiny for crimes involving crypto. The United Nations Office on Drugs and Crime said criminal groups were using cryptocurrency to hide money and pay for things on the dark web.
Featured image from GVI, chart from TradingView
