Key Points:
- The Cambodian government blocked 16 cryptocurrency exchange websites, including Binance and Coinbase.
- The action follows earlier bans on cryptocurrency usage by the National Bank of Cambodia.
- Despite regulatory hurdles, Cambodian crypto exchange remains integral to the country’s economy.
According to Nikkei, 16 Cambodian crypto exchange sites, including Binance and Coinbase, had been blocked by the country’s government on a license issue as per the latest directive issued by the Telecommunication Regulator of Cambodia (TRC).
Read more: Cambodia Gets Binance Help With Crypto RegulationsÂ
Cambodian Crypto Exchange Blocked in Licensing Crackdown
Targets of the TRC order include 102 URLs, many of which are associated with online gambling sites. While many of the URLs feature obscure gambling domains, the inclusion of Binance, which is known for its 2022 partnership with the Cambodian Securities and Exchange Regulator (SERC), surprised industry observers.
Stating that the blocked Cambodian crypto exchanges lack proper licenses from SERC to the TRC, the directive was signed by acting chairman Srun Kimsann. The spokesperson for TRC confirmed the action as the latest in an ongoing crackdown on digital currency businesses in Cambodia. However, public access to these platforms’ mobile applications is not suspended.
The country’s National Bank, in 2017, banned all financial institutions from dealing with cryptocurrencies, but enforcement has been lax as the countries have continued to freely use the said cryptocurrencies for online gambling and other digital enterprises.
Digital currency thrives despite regulatory challenges in Cambodia.
Though the country has restrictions, cryptocurrency is still one of the main driving forces of the digital economy in Cambodia.
For example, a memorandum of understanding between Binance and SERC was signed by both in 2022 for the development of cryptocurrency regulations. The platform also has a partnership with the Royal Group, one of Cambodia’s biggest conglomerates, to further show interest in establishing a presence in the country.
Currently, Cambodian crypto exchanges such as Huione Guarantee dominate the space and capture an estimated 70% of transactions. The exchange is under the Huione Group from Cambodia. Observers say that the situation illustrates Cambodia’s difficulty in enforcing regulations in light of the decentralized nature of cryptocurrency markets.
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Source: Coincu
