Cambodia Blocks 16 Crypto Exchange websites Including Binance and Coinbase
Cambodia has blocked 16 cryptocurrency trading websites, including well-known ones such as Binance, Coinbase and OKX, in an effort to regulate the fast-growing but mostly unregulated cryptocurrency market. However, while the website was blocked, their app was still operational, leading many to question how effective the move would be.
Why the suppression?
The Cambodian government is under pressure to address its reputation as a hotspot for cybercrime and crypto-related scams. A report by the United Nations Office on Drugs and Crime shows that Cambodian criminal groups use cryptocurrencies to conduct illegal activities, including money laundering and dark web transactions.
In addition, there is a Chain Analysis Report Highlights More than $49 billion in cryptocurrency transactions are linked to Huioneguarantee, a major player in Cambodian conglomerate Huione Group.
Cambodian government targets unlicensed platforms
The Telecommunications Regulator of Cambodia (TRC) issued an order on November 20 to block 102 websites. While many of the target platforms are related to online gambling, the inclusion of Binance and other major crypto platforms surprised many.
The TRC explained that the platforms did not have the appropriate licenses from the Securities and Exchange Regulatory Authority of Cambodia (SERC).
Binance has established partnerships in the country, including a 2022 agreement with the State Electricity Regulatory Commission (SERC) to assist in the development of cryptocurrency regulations. Binance also provided cryptocurrency-related crime detection training to officials from the Ministry of the Interior in mid-2023.
Despite these actions, Cambodia’s relationship with Binance has made the situation even more confusing.
Limited licensing options
Currently, only two companies are authorized to operate digital asset businesses under Cambodia’s “Fintech Regulatory Sandbox” program. Even these licensed companies cannot convert digital assets into local or foreign currencies, limiting their use.
Cryptocurrency demand remains strong
Despite the crackdown, Cambodia remains a significant player in the global cryptocurrency space. It ranks among the top 20 countries for retail cryptocurrency usage per capita, with centralized exchanges handling 70% of transactions.
Where there is organic need and practical application, broad constraints tend to fail. ” pointed out Chengyi Ong, Head of Asia Pacific Policy at Chainaanalysis.
This sentiment suggests that Cambodia’s cryptocurrency market may adapt and continue to thrive even under tighter regulations.
