According to TechFlow, on December 27, Cryptonews reported that the National Bank of Cambodia (NBC) approved commercial banks and payment institutions for the first time to provide services related to Category 1 crypto assets, including stablecoins and secured cryptocurrencies, but still prohibited unsecured cryptocurrencies such as Bitcoin.
The directive, issued on December 26 and announced on the 27th, aims to regulate the operation of digital currencies to cater to global financial trends. Institutions need to obtain approval from the NBC before they can conduct crypto-asset and fiat currency exchanges, inter-account transfers and custody services. Institutions are not allowed to use customers' crypto assets for their own purposes.
Earlier this month, Cambodia blocked 16 crypto exchange websites including Binance, Coinbase and OKX as part of its efforts to regulate the digital asset market. Although website access is restricted, the mobile apps of these platforms are still available.
Despite these measures, Cambodia still leads the world in retail crypto usage per person, with centralized exchanges accounting for 70% of crypto trading in the country. Currently, only two companies are licensed under the Securities and Exchange Regulatory Authority of Cambodia (SERC)’s “Fintech Regulatory Sandbox” program, which allows trading of digital assets but prohibits conversion to Cambodian fiat currency or other legal tender.