Cambodia has reportedly blocked access to several cryptocurrency exchanges in the country, including the industry’s leading platforms Coinbase, Binance and OKX.
The Cambodian government is taking this crypto regulation step amid efforts to combat crimes related to crypto assets, Nikkei Asia reported on Dec.3.
According to Nikkei Asia, market regulators in Cambodia have blocked access to 16 crypto exchanges.
These include the industry’s largest and most popular exchanges such as Binance, OKX, and Coinbase.
The authorities reportedly took this action after the exchanges’ failure to register and secure relevant regulatory approvals, which are key to the licenses providers need to offer their services and products in the country.
However, while the Securities and Exchange Regulator of Cambodia (SERC) has blocked web access to the 16 exchanges, it has not banned the platforms’ apps.
The move comes as the country faces increased international pressure about its growing status as a central hub for crypto cybercriminals.
The United Nations Office of Drugs and Crime has previously pointed to increased use of crypto across dark markets, while on-chain data has suggested billions of dollars worth of transactions have been facilitated via cryptocurrencies.
It includes the Chainalysis report that showed Huione Guarantee has used crypto for transactions worth over $49 billion between 2021 and 2024.
102 domains blacklisted
Under the law, exchanges seeking to offer their services in Cambodia have to apply for and acquire licenses.
The oversight for this is under the FinTech Regulatory Sandbox, a SERC program linked to the country’s Non-bank Financial Services Authority.
Only two companies currently have the relevant regulatory nod to offer digital assets trading.
Accordingly, regulators have banned 102 domains, including those related to online crypto-gambling sites and exchanges.
The Asian country currently ranks as one of the top 20 in retail adoption of crypto per capita. Meanwhile, data shows the various centralized exchanges account for 70% of transactions, suggesting a potential impact from the reported ban.
However, Binance and other blacklisted crypto exchanges have had a growing presence in the market.
In 2022, the Binance team signed a memorandum of understanding with the Securities and Exchange Regulator as the country looked to develop its crypto regulation framework.
The exchange also sealed a major collaboration with Cambodian conglomerate Royal Group.
In Aug 2024, Binance and other exchanges resumed operations in India after the country blocked access and ordered the removal of their apps from Google Play Store and Apple App Store.
The return followed a seven-month ban, which started in January 2024 and came after regulatory action by the Financial Intelligence Unit (FIU) in December 2023. Binance paid a $2 million fine before its fresh entry into India.
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