This country bans Binance, Coinbase and 14 other crypto exchanges$BNB
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Cambodia has blocked access to 16 cryptocurrency exchanges, including major platforms such as Binance, Coinbase, and OKX, as part of its efforts to regulate the digital asset market.
The action was taken by the Telecommunications Regulatory Authority of Cambodia (TR$XRP
C), targeting platforms operating without proper licenses from the Securities Regulatory Commission of Cambodia (SERC).
Cambodia Against Cryptocurrencies: New Rules Aim to Curb Illicit Activities
Authorities reportedly restricted access to 102 domains in a directive signed by TRC acting chief Srun Kimsan, with the main focus being cryptocurrency exchanges and online gambling sites. Authorities blocked access to the sites, but the platforms’ mobile apps are still operational.
The crackdown reflects Cambodia’s cautious approach to cryptocurrencies. Only two entities are currently licensed to operate under SERC’s fintech regulatory scheme. Regulators prohibit these licensed platforms from facilitating the exchange of digital assets for fiat currencies, including the Cambodian riel and the US dollar.
The move comes despite Binance’s partnerships in Cambodia. In 2022, Binance signed a memorandum of understanding with SERC to help develop cryptocurrency regulations. Binance has also partnered with Royal Group, a leading Cambodian conglomerate, and trained Interior Ministry officials to detect crypto-related crimes earlier this year.
The Cryptocurrency Paradox in Cambodia
Cambodia’s regulatory moves come amid increased scrutiny of its role as a hub for cryptocurrency fraud and cybercrime. The United Nations Office on Drugs and Crime has warned that the country is a hotspot for illicit activities, including money laundering and dark web transactions facilitated by cryptocurrencies.
Criminal gangs linked to Chinese gambling and fraud networks have trafficked around 30,000 individuals to Cambodia and neighboring countries such as Myanmar. The criminals force these victims to create fake profiles and organize scams, including cryptocurrency fraud schemes, under intense pressure.
Chainalysis found: “Huione Guarantee, an online marketplace linked to Cambodian conglomerate Huione Group, has recently been exposed as a major player in facilitating cybercrime. Our coverage of the service is much broader than previously reported — we determined that the platform has processed over $49 billion in cryptocurrency transactions since 2021.”
Many of these activities are linked to Sihanoukville, a city known for its illegal online gambling operations. Cambodia banned such activities in 2020 after pressure from Beijing, but remnants of the underground economy remain.
Cryptocurrency crackdowns elsewhere
As countries ramp up enforcement measures, the cryptocurrency industry faces a critical turning point. Finding the balance between innovation and compliance will determine the trajectory of digital assets in markets like Cambodia, Germany, the United Kingdom, and the United States. For now, crypto players must navigate an increasingly fragmented and challenging regulatory landscape.
