Cambodia has blocked access to 16 cryptocurrency exchange websites, including major platforms like Binance, Coinbase, and OKX, in an effort to regulate the digital asset market. The Telecommunication Regulator of Cambodia (TRC) enforced the action, targeting platforms without proper licenses from the Securities and Exchange Regulator of Cambodia (SERC).

The TRC, in a directive signed by acting chairman Srun Kimsann, restricted access to 102 domains, focusing mainly on crypto exchanges and online gambling sites. While website access is blocked, mobile apps for these platforms remain functional.

Two Entities Authorized in Sandbox

Cambodia’s cautious approach to cryptocurrency is evident, as only two entities are authorized to operate under the SERC’s FinTech Fintech Financial Technology (fintech) is defined as ay technology that is geared towards automating and enhancing the delivery and application of financial services. The origin of the term fintechs can be traced back to the 1990s where it was primarily used as a back-end system technology for renowned financial institutions. However, it has since grown outside the business sector with an increased focus upon consumer services.What Purpose Do Fintechs Serve?The main purpose of fintechs would be to suppl Financial Technology (fintech) is defined as ay technology that is geared towards automating and enhancing the delivery and application of financial services. The origin of the term fintechs can be traced back to the 1990s where it was primarily used as a back-end system technology for renowned financial institutions. However, it has since grown outside the business sector with an increased focus upon consumer services.What Purpose Do Fintechs Serve?The main purpose of fintechs would be to suppl Read this Term Regulatory Sandbox program. These licensed platforms are prohibited from facilitating the exchange of digital assets for fiat currencies, including the Cambodian riel and US dollars.

This regulatory action comes despite Binance’s efforts in Cambodia. In 2022, Binance signed a memorandum of understanding with the SERC to assist in developing digital currency regulations. The platform also collaborated with the Royal Group, a major Cambodian conglomerate, and trained Interior Ministry officials to detect crypto-related crimes.

🇰🇭 LATEST: Cambodia blocks access to 16 crypto exchange websites, including Binance, Coinbase, and OKX. pic.twitter.com/PNZK7Gi1dF

— Cointelegraph (@Cointelegraph) December 3, 2024

Cambodia Tackles Crypto-Related Illicit Activities

The country’s crypto crackdown is part of wider concerns about its role in global crypto scams and cybercrime. The UN Office on Drugs & Crime has identified Cambodia as a hotspot for illicit activities, such as money laundering Money Laundering Money laundering is a blanket term to describe the process by which criminals disguise the original ownership and proceeds of criminal conduct by making such proceeds appear to be derived from a legitimate source.Money laundering is an issue that traverses countless industries and sectors, which includes the financial services space. Though criminal money may be successfully laundered without the assistance of the financial sector, billions of dollars’ worth of criminally derived money are laund Money laundering is a blanket term to describe the process by which criminals disguise the original ownership and proceeds of criminal conduct by making such proceeds appear to be derived from a legitimate source.Money laundering is an issue that traverses countless industries and sectors, which includes the financial services space. Though criminal money may be successfully laundered without the assistance of the financial sector, billions of dollars’ worth of criminally derived money are laund Read this Term and dark web transactions facilitated by cryptocurrencies.

Criminal syndicates, often linked to Chinese gambling and fraud networks, have trafficked around 30,000 individuals to Cambodia and Myanmar, coercing them into creating fake profiles and running scams, including fraudulent cryptocurrency operations.

These activities are often cantered in Sihanoukville, a city known for illegal online gambling operations. Despite a 2020 ban on such activities, remnants of the underground economy remain.

Crypto Scams Raise Global Concerns

A recent Chainalysis report highlighted billions of dollars in “pig butchering” scams connected to Huione Guarantee, raising global concerns about Cambodia’s regulatory and enforcement capabilities regarding cryptocurrency.

Despite its regulatory measures, Cambodia remains an active participant in the global cryptocurrency market. It ranks in the top 20 for retail crypto usage per capita, with 70% of transactions occurring via centralized exchanges. Statista forecasts the country’s digital assets market will generate $8 million in revenue in 2024, though growth is expected to slow by 2025.