This is Why Cambodia Approves Stablecoins, Not Bitcoin
The National Bank of Cambodia (NBC) currently allows commercial banks and payment institutions to use certain “category 1” assets such as stablecoins, especially those backed by large fiat assets. However, Bitcoin is still banned in the country.
This development may help create growth for the country’s burgeoning blockchain space, but true transformation will require broader crypto-friendly policies.
Is Cambodia friendly to stablecoins?
According to local Reportthis new initiative seems to be a positive step Regulation of stablecoins in Cambodiabut the country is clearly skeptical of encryption. Hong Vanak, economic researcher at the Royal Academy of Cambodia, highlighted this dynamic.
“Cryptocurrencies, due to their digital and decentralized nature, do not bring much benefit to the national economy and even complicate management, taxation and ownership tracking. (However) Vanak claimed that giving crypto services a green light could provide Commercial banks and financial institutions generate significant revenue from user transaction fees.
Cryptocurrency Regulation in Cambodia Becoming more stringent throughout 2024. For example, country Block 16 major international exchanges earlier this month.
However, the national bank was not always so hostile. It previously launched a CBDC and deployed cross-border payment transfers. However, growing concerns about money laundering have prompted regulators to scrutinize digital assets more closely. Now, its acceptance of stablecoins is the best news for Cambodian cryptocurrencies.
Cryptocurrency adoption has grown in the country over the past two years. However, much of it is associated with organized crime, creating a negative stigma.
For example, researchers $11 billion worth of darknet transactions discovered Earlier this year, the event traveled across Cambodia, with even the president’s extended family taking part. Then tether Most assets frozen.
this Darknet markets have even been linked to money laundering from the notorious North Korean Lazarus Group, further deepening the scandal. In recent years, Cambodian regulators Works with companies like Binance Build proactive supervision.
While it’s good that Cambodia approves stablecoins, expanding them into the wider cryptocurrency space may take time.
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