Cambodia intensifies crypto oversight, blocks 16 exchanges including Binance, Coinbase

Cambodian authorities have intensified their cryptocurrency oversight by blocking access to 16 major crypto exchanges.

According to a report by Nikkei Asia, these exchanges include industry leaders Binance, Coinbase, and OKX. The Telecommunication Regulator of Cambodia (TRC) implemented the restrictions due to the platforms’ lack of proper licensing from the Securities and Exchange Regulator of Cambodia (SERC).

Cambodia blocks 102 domains

The crackdown extends beyond cryptocurrency, with TRC acting chairman Srun Kimsann signing a directive that blocks 102 domains. They have primarily targeted online gambling operations. While website access has been restricted, mobile applications of these platforms remain accessible to users.

The restrictions come as a surprise given Binance’s established presence in Cambodia. It also includes a 2022 memorandum of understanding with SERC focused on digital currency regulation development and a partnership with the Royal Group, a major Cambodian conglomerate. Binance spokesperson Lily Lee acknowledged the situation, noting that multiple platforms were affected and that they are “closely monitoring the evolving situation.”

Cambodia maintains an important crypto position

Despite the regulatory challenges, the Asian country maintains an important position in the global crypto landscape. It ranks among the top 20 countries for retail crypto adoption per capita, according to Chainalysis. Centralized exchanges facilitate 70% of the country’s cryptocurrency transactions, highlighting the potential impact of these restrictions.

Currently, only two companies have received authorization under SERC’s FinTech Regulatory Sandbox program. These licensed entities can trade digital assets but face restrictions on exchanges involving the country’s legal tender – the riel and US dollars – or other fiat currencies.

The regulatory action follows increased scrutiny over crypto-related criminal activities in Cambodia. The UN Office of Drugs and Crime has reported criminal organizations using cryptocurrency for dark-web payments and money laundering.

Chainalysis identified over $49 billion in crypto transactions between 2021 and mid-2024 facilitated by Huione Guarantee, raising additional concerns about illicit activities.

Chainalysis’s head of Asia-Pacific policy, Chengyi Ong, suggests that broad-based restrictions may have limited effectiveness where organic demand and real-world applications exist

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