Cambodia blocks 16 leading crypto exchanges to control industry
Cambodian authorities block access to 16 crypto exchanges, including Binance and Coinbase
Cambodian authorities have ramped up their regulatory actions against cryptocurrency platforms, blocking access to 16 major exchanges, including Binance, Coinbase, and OKX.
The move, enforced by the Telecommunication Regulator of Cambodia (TRC), targets platforms operating without licenses from the Securities and Exchange Regulator of Cambodia (SERC), reports Cryptopolitan.
Crackdown on Crypto and Gambling Domains
In a directive signed by TRC acting chairman Srun Kimsann, authorities restricted access to 102 domains, focusing primarily on cryptocurrency exchanges and online gambling sites. While website access has been blocked, mobile apps for these platforms remain accessible.
The restrictions come despite Binance's significant presence in Cambodia. In 2022, Binance signed a memorandum of understanding with SERC to develop digital currency regulations and partnered with the Royal Group, a leading Cambodian conglomerate. Binance spokesperson Lily Lee acknowledged the situation, noting that multiple platforms were affected, and the company is “closely monitoring the evolving situation.”
Cambodia’s Crypto Adoption Amid Regulatory Hurdles
Cambodia has emerged as a notable player in the global crypto market, ranking among the top 20 countries for retail crypto adoption per capita, according to Chainalysis. Centralized exchanges account for 70% of the country's crypto transactions, underscoring the potential impact of these new restrictions.
However, regulatory challenges persist. Only two entities are authorized under SERC’s FinTech Regulatory Sandbox program to trade digital assets, and they face restrictions on transactions involving the local currency, the riel, or fiat currencies like the US dollar.
This latest crackdown coincides with rising concerns over crypto-related criminal activities in Cambodia. The UN Office of Drugs and Crime reported that criminal organizations are increasingly using cryptocurrencies for dark-web payments and money laundering. Additionally, Chainalysis identified over $49 billion in transactions from 2021 to mid-2024 facilitated by Huione Guarantee, raising red flags about illicit activities.
Effectiveness and Challenges of Crypto Regulation
Despite these measures, some experts question their efficacy. Chainalysis Asia-Pacific policy head Chengyi Ong noted that broad-based restrictions might have limited impact in regions where there is strong organic demand and real-world crypto applications.
As Cambodia tightens its grip on crypto platforms, the country’s approach highlights the delicate balance between fostering innovation and addressing security and compliance concerns.
Recently we wrote, that retail cryptocurrency trading volumes in South Korea reached $18 billion in the last 24 hours, surpassing the country's stock market by 22%.
