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Cambodia has blocked access to 16 Cryptocurrency trading websites, including major platforms such as Binance, Coinbase and OKX, as part of efforts to regulate the digital asset market.
The action, enforced by the Telecommunications Regulatory Authority of Cambodia (TRC), targets platforms operating without a valid license from the Securities Regulatory Authority of Cambodia (SERC).
Cambodia confronts Crypto: New rules aim to curb illegal activity
According to the report, authorities restricted access to 102 domains in a directive signed by TRC acting chairman Srun Kimsann. The main focus is on Cryptocurrency exchanges and online betting sites. Access to the website is blocked, but the mobile applications of these platforms still work normally.
The crackdown reflects Cambodia’s cautious approach to Cryptocurrencies. Only two entities are authorized to operate under SERC’s FinTech Lab program. Regulators prohibit these platforms from exchanging digital assets for fiat currencies, including Cambodian riel and US dollars.
This move comes despite Binance’s partnership in Cambodia. In 2022, Binance signed a memorandum of understanding with SERC to support the development of digital currency regulations. Binance also partnered with Royal Group, a large Cambodian conglomerate, and trained Ministry of Home Affairs officials to detect Cryptocurrency-related crimes earlier this year.
“We are aware of recent developments in Cambodia and are closely monitoring the situation. Currently, many overseas Cryptocurrency platform websites appear to be inaccessible, including Binance. Binance remains committed to working with local authorities, promoting a compliance environment, and supporting blockchain technology development,” a Binance spokesperson told TinTucBitcoin.
The Cryptocurrency Paradox in Cambodia
Cambodia’s regulatory measures come amid growing scrutiny over the country’s role as a hub for Cryptocurrency fraud and cybercrime. The United Nations Office on Drugs & Crime has warned that Cambodia is a hotspot for illegal activities, including money laundering and dark web transactions through Cryptocurrencies.
Criminal organizations involved in gambling and fraud networks from China have arrested about 30K people coming to Cambodia and neighboring Myanmar. Criminals force these victims to create fake profiles and organize Cryptocurrency scams, under great pressure.
“Huione Guarantee, an e-marketplace related to the Cambodian conglomerate, Huione Group, was recently exposed as a major actor in the facilitation of cybercrime. Our reporting on this service is much larger than previously forecast – we have determined that the platform has processed over $49 billion in Cryptocurrency trading since 2021,” Chainalysis found .
Many of these operations are linked to Sihanoukville, a city known for its illegal online gambling. Cambodia banned these activities in 2020 under pressure from Beijing, but remnants of the underground economy continue.
Report from Chainalysis reveals billions in “pig butchering” scam activities related to Huione Guarantee. This discovery raises global concerns about Cambodia’s regulatory and enforcement framework for Cryptocurrency activities.
Despite the crackdown on exchanges, Cambodia remains an important player on the global Cryptocurrency playing field. The country ranks in the top 20 for retail Cryptocurrency usage per capita, with 70% of transactions going through centralized exchanges. It is expected that the digital asset market in Cambodia will generate $8 million in revenue by 2024, although growth may slow in 2025.
The government has embraced digital financial innovation through the Bakong payment system, which processed 200 million transactions in 2023. However, Cryptocurrencies remain officially banned while unofficially thriving through peer-to-peer marketplaces and platforms like Huione Guarantee.
The Cambodia Fintech Development Policy details plans for a comprehensive regulatory framework for digital assets and DeFi systems. These measures aim to tackle financial crime and support a more organized digital economy in the coming years.
Cryptocurrency Crackdown Elsewhere
Cambodia’s actions are part of a global trend. In September 2024, German authorities closed 47 Cryptocurrency exchanges due to money laundering allegations. They quote anonymous transactions without proper KYC processes.
In November 2024, the UK Financial Conduct Authority released a “roadmap” of stricter regulations for Cryptocurrencies. This includes capital requirements and insider trading prevention rules, which are expected to be implemented in 2026.
Meanwhile, Coinbase continues to face significant challenges in the United States. In June 2023, the SEC charged Coinbase with being an unregistered securities exchange, broker, and settlement organization.
Coinbase sought to have the lawsuit dismissed, but a New York court denied the motion in March 2024. The SEC’s charges were allowed to proceed. Coinbase’s legal battle highlights broader uncertainties facing cryptocurrency exchanges in the US.
As countries ramp up enforcement measures, the Cryptocurrency industry faces a critical inflection point. Balancing innovation and compliance will determine the trajectory of digital assets in markets such as Cambodia, Germany, UK, and US. Currently, Cryptocurrency players must navigate an increasingly fragmented and challenging regulatory environment.
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