The Central Bank of Cambodia (NBC) has, for the first time in its history, allowed commercial banks and payment institutions to offer services related to Category 1 crypto assets.
This category includes cryptocurrencies that are backed or stablecoins, but the ban on unbacked cryptocurrencies like Bitcoin remains in place.
This development was formalized in a regulation published on December 26 and announced by the Central Bank of Cambodia on December 27. The regulation aims to regulate transactions and businesses involving digital currencies and reflects Cambodia’s efforts to keep up with global financial innovations.
Terms of new services
According to the regulation, all commercial banks and payment institutions that want to offer crypto-related services must obtain prior approval from the Central Bank of Cambodia. The authorized institutions will be able to conduct the following activities:
Exchange of crypto assets with fiat currencies and vice versa,
Transfer of crypto assets between accounts,
Providing custody services for crypto assets.
However, these organizations are strictly prohibited from using their clients' crypto assets for their own purposes.
Stay tuned.