In an effort to regulate the cryptocurrency market, the authorities of Cambodia have blocked access to 102 domains, including 16 major exchanges such as Binance, OKX, and Coinbase (NASDAQ:COIN).
Nikkei Asia reported that these platforms failed to obtain licenses from the Securities and Exchange Commission of Cambodia, which are necessary to operate in the country. Although the websites of the platforms are now unavailable to Cambodians, their mobile applications continue to function.
According to local media reports, the platforms primarily targeted by the authorities are those related to online gambling. However, the fact that globally recognized cryptocurrency exchanges were included in the list surprised many industry representatives.
According to Chainalysis, Cambodia ranks among the top 20 countries in terms of cryptocurrency adoption in retail trading per capita. Centralized exchanges account for 70% of cryptocurrency transactions in the country.
We are closely monitoring the developments, representatives of Binance stated in response to the blockade.
Binance, which has been placed on the 'blacklist' in Cambodia, has maintained long-term relations with the country's authorities since 2022. Additionally, the company has trained employees of the Ministry of Interior to identify crimes related to digital assets.
Experts have linked the ban on exchanges to an increase in cryptocurrency fraud. The UN Office on Drugs and Crime has labeled Cambodia a 'hotspot' for illegal activities, including money laundering and dark web transactions using cryptocurrency. According to the agency, criminal syndicates, often linked to Chinese gambling networks, have trafficked approximately 30,000 people to Cambodia and neighboring Myanmar. They are forced to create fake online profiles and participate in scams, including complex fraudulent schemes involving digital assets.
