A country in Southeast Asia has intensified its strict stance on cryptocurrency by restricting access to various digital asset exchanges. Cambodian regulatory authorities have taken decisive action by blocking 16 crypto exchange websites, including major platforms like Coinbase and Binance.
Cambodia’s Cryptocurrency Enforcement
Cambodian officials are relentless in their efforts to curb unregulated cryptocurrency activities, significantly impacting these unauthorized digital asset businesses.
Cambodia blocks access to 16 crypto exchange websites
— Nikkei Asia (@NikkeiAsia) December 3, 2024
The Telecommunications Regulator of Cambodia (TRC) has suspended 16 cryptocurrency exchange websites for failing to comply with state licensing regulations. This crackdown has affected well-known companies like Binance, Coinbase, and OKX.
Officials in Cambodia imposed restrictions on these exchanges due to their absence of licenses from the Securities and Exchange Regulator of Cambodia (SERC).
Despite the website blocks, investors can still use the mobile applications of these platforms. Analysts are questioning the effectiveness of such restrictions, as users may find ways to bypass the government’s measures.
Warnings for Crypto Exchanges
The SERC has indicated that taking action against unlicensed cryptocurrency firms is part of the government’s strategy to regulate the burgeoning digital asset sector.
Authorities have made it clear that crypto exchanges are operating without proper authorization and that the growth in these firms poses significant risks to the financial landscape and users alike.
Some analysts attribute the rise of unlicensed crypto exchanges in Cambodia to the government’s failure to establish and enforce comprehensive cryptocurrency legislation.
This regulatory void has allowed both local and international crypto players to take advantage of the situation.
Cambodia’s Place in the Crypto World
While Cambodia grapples with effectively regulating its crypto market, its status within the global cryptocurrency sphere remains stable.
Statistics reveal that Cambodia ranks among the top 20 nations in terms of retail cryptocurrency adoption per capita, with approximately 70% of the country’s crypto transactions being conducted through centralized exchanges, highlighting potential effects of these restrictions.
According to Chainalysis, over $49 billion in cryptocurrency transactions occurred through Huione Guarantee from 2021 to mid-2024, raising alarms about possible connections to illegal activities.
Chengyi Ong, head of strategy for Chainalysis Asia-Pacific, noted that strict regulations might not yield the desired effects if there is ongoing natural demand and practical applications for cryptocurrency.
This government intervention comes amid growing scrutiny over criminal use of cryptocurrencies. The UN Office on Drugs and Crime reported that illegal groups have utilized digital currencies to launder money and conduct transactions on the dark web.
Featured image from GVI, chart from TradingView