NBC Endorses Regulated Crypto Assets for Use in Cambodia

The National Bank of Cambodia (NBC) has released a fresh directive allowing commercial banks and payment institutions to engage in cryptocurrency services, encompassing stablecoins and those backed by assets. However, cryptocurrencies without backing, like Bitcoin, continue to be off-limits.

This initiative is aimed at regulating the use of digital currencies within the nation, reflecting Cambodia's commitment to keeping pace with global financial developments. Under this new directive, any commercial entity wishing to provide crypto-related services must receive prior approval from the NBC. 

Approved entities will be able to conduct activities such as exchanging cryptocurrency for fiat currencies and the reverse, transferring crypto assets across accounts, and providing custody solutions. However, these institutions are explicitly forbidden from using their clients' cryptocurrency assets for personal gain.

Cambodia Restricts Access To Major Cryptocurrency Exchanges As Part Of Its Digital Market Regulation Efforts

In the past, Cambodia has banned cryptocurrency transactions and trading due to the associated high risks, including money laundering, fraud, and connections to illegal activities prevalent in the underground market.

Earlier this month, Cambodian authorities took action by blocking 16 cryptocurrency exchange platforms, including prominent names like Coinbase and OKX, as part of their ongoing regulation of the digital asset space.  Binance This directive followed the Telecommunications Regulator of Cambodia (TRC) imposing restrictions on 102 websites, mainly targeting online gambling services. Cryptocurrency exchanges were included in this blockade due to their lack of licenses from the Securities and Exchange Regulator of Cambodia (SERC). While website access has been restricted, users can still reach these platforms via mobile applications.

Despite these restrictions, Cambodia is recognized as a top player in retail cryptocurrency adoption per capita, as indicated by data from an analytics firm. Centralized exchanges account for about 70% of the cryptocurrency transactions occurring in the region.

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