A Southeast Asian country continues its strict policy against cryptocurrency platforms as it has hindered access to digital asset exchanges. Regulatory officials in Cambodia have imposed an iron hand against cryptocurrency players Access to 16 cryptocurrency exchanges blocked Which includes some famous companies such as Coinbase And Binance.
Cambodia crypto campaign
Government officials in Cambodia have continued their unwavering campaign to stop unregulated cryptocurrency activities in the country, dealing a heavy blow against unlicensed digital asset companies.
Cambodia blocks access to 16 cryptocurrency exchange sites https://t.co/CYILxRKj1a
– Nikkei Asia (@NikkeiAsia) December 3, 2024
The Telecommunications Regulatory Commission of Cambodia (TRC) has suspended 16 bitcoin exchange sites for violating government licensing rules. Among those affected by this government crackdown are leaders of companies such as Binance, Coinbase, and OKX.
The Cambodian Regulatory Office was implemented Restrictions on these cryptocurrency exchanges Because they lack proper licensing from the Securities and Exchange Commission of Cambodia (SERC).
However, only the websites of these platforms are blocked. Investors can still access the cryptocurrency company’s mobile apps. Analysts question the efficacy of the restrictions as users can still have a way around the government’s rule.
Total crypto market cap as of Dec. 3, 2024 at $3.37 trillion: TradingView.com
Cryptocurrency exchanges have been warned
SERC said the measures taken against unlicensed cryptocurrency companies are part of the government’s efforts to regulate the growing digital assets market.
The government has repeatedly reminded cryptocurrency exchanges that it is, state authorities said Working without obtaining the appropriate licenseSaying that the increasing number of these companies already poses a major threat to the financial ecosystem and poses an increasing risk to users.
Analysts have partly blamed the Cambodian government for the boom in unlicensed cryptocurrency exchanges because the Asian country has failed to pass and implement any comprehensive laws on cryptocurrency operations.
Hence, the regulatory vacuum has provided an opportunity for local and international crypto actors to exploit this weakness.
A scenic view of Cambodia. Image: Travel Inspires
The status of cryptocurrencies in Cambodia
The Southeast Asian country may face difficulties in regulating the cryptocurrency market, but Cambodia’s position in the global cryptocurrency scene remains unchanged.
Data shows that the country is still among the top 20 countries in retail Cryptocurrency Adoption for an individual. About 70% of cryptocurrency transactions in Cambodia come from centralized exchanges, underscoring the potential impacts of these restrictions.
According to Chainalogy, more than $49 billion in cryptocurrency transactions were facilitated by Huione Escrow between 2021 and mid-2024, raising concerns about potential involvement in illicit activities.
Broad restrictions may not work well if there is natural demand and real-world uses, said Chengye Ong, who is in charge of Chainalysis’ strategy for the Asia-Pacific region.
The government took action after being closely scrutinized for crimes related to cryptocurrencies. The United Nations Office on Drugs and Crime said criminal groups are using cryptocurrencies to hide money and pay for things on the dark web.
Featured image from GVI, chart from TradingView