16 Exchanges Banned for Licensing
As part of efforts to regulate the digital asset market, Cambodia has blocked 16 cryptocurrency trading websites, including major platforms such as Binance, Coinbase and OKX.
The operation, carried out by the Telecommunications Regulator of Cambodia (TRC), targeted platforms operating without proper licenses from the Securities and Exchange Regulatory Authority of Cambodia (SERC).
Cambodia and Cryptocurrency: New Rules Aimed to Curb Illegal Activity
It turned out to be report In a directive signed by TRC Acting Chairman Srun Kimsann, the authorities restricted access to 102 domain names, mainly focusing on cryptocurrency exchange and online gambling sites. Authorities have blocked website access, but mobile apps for the platforms remain available.
The crackdown reflects Cambodia’s cautious approach to cryptocurrencies. Only two entities are currently authorized to operate under the State Electricity Regulatory Commission’s FinTech Regulatory Sandbox Program. Regulators prohibit these licensed platforms from facilitating the exchange of digital assets with fiat currencies, including the Cambodian riel and the U.S. dollar.
Despite this move Binance’s partner in Cambodia. In 2022, Binance signed a memorandum of understanding with the State Electricity Regulatory Commission to assist in the development of digital currency regulations. Earlier this year, Binance also partnered with leading Cambodian conglomerate Royal Group and trained Ministry of Interior officials to detect cryptocurrency-related crimes.
Cambodia’s Crypto Paradox
Cambodia’s regulatory measures come as its role as a cryptocurrency hub comes under increasing scrutiny Scam and cybercrime. United Nations Office on Drugs and Crime marked The country is a hotspot for illegal activities, including money laundering and dark web transactions through cryptocurrencies.
Criminal syndicates linked to Chinese gambling and fraud networks trafficked About 30,000 people traveled to Cambodia and neighboring Myanmar. Criminals use severe coercion to force these victims to create false profiles and orchestrate scams, including fraudulent cryptocurrency schemes.
“Huioneguarantee is an online marketplace linked to Cambodian conglomerate Huione Group that has recently been exposed as a significant player in facilitating cybercrime. Our service coverage is much wider than previously reported – we found that since 2021 the platform Has processed over $49 billion in cryptocurrency transactions.” established.
Many of these activities are linked to Sihanoukville, which is notorious for illegal online gambling activities. Under pressure from Beijing, Cambodia banned such activities in 2020, but remnants of the underground economy remain.
Chainaanalysis report reveals billion-dollar hog slaughter operation Linked to Huiwang Guarantee. The discovery adds to global concerns about Cambodia’s regulatory and enforcement framework for cryptocurrency activities.
Despite the crackdown on exchanges, Cambodia remains a significant player in the global crypto space. Cambodia ranks in the top 20 for retail cryptocurrency usage per capita, with 70% of transactions conducted through centralized exchanges. Statista expects the Cambodian digital asset market to generate $8 million in revenue by 2024, but growth may slow by 2025.
The government embraces digital financial innovation through the Bakong payment system, which processed 200 million transactions in 2023. However, cryptocurrencies remain officially banned but thrive informally through peer-to-peer marketplaces and platforms such as Huioneguarantee.
Cambodia’s Fintech Development Policy contour Plans to establish a comprehensive regulatory framework for digital assets and decentralized financial systems. These measures aim to tackle financial crime and support a more organized digital economy in the coming years.
Cryptocurrency Crackdown Elsewhere
Cambodia’s actions are part of a global trend. In September 2024, German authorities shut down 47 cryptocurrency exchanges over money laundering accusations. They cited anonymous transactions without proper KYC protocols.
In November 2024, the UK Financial Conduct Authority Launched a “Roadmap” for stricter encryption regulations. These include capital requirements and insider trading rules, which are expected to be implemented in 2026.
at the same time, Coinbase continue There are significant challenges in the United States. In June 2023, the SEC accused Coinbase of operating as an unregistered securities exchange, broker and clearing agency.
Coinbase seeks dismiss casebut the New York court The motion was rejected March 2024. The SEC charges were allowed to proceed. Coinbase’s regulatory battle highlights broader uncertainty facing U.S. cryptocurrency exchanges
The crypto industry faces a critical inflection point as countries ramp up enforcement measures. Striking a balance between innovation and compliance will determine the trajectory of digital assets in markets such as Cambodia, Germany, the United Kingdom and the United States. Currently, cryptocurrency players must navigate an increasingly fragmented and challenging regulatory environment.
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