A Southeast Asian country continues its rigorous policy against cryptocurrency platforms as it hampered access to digital asset exchanges. Regulatory officials in Cambodia imposed an iron hand against cryptocurrency players by blocking access to 16 crypto exchanges which include some of the popular firms such as Coinbase and Binance.
Cambodia Crypto Crackdown
Government officials in Cambodia kept on with their unwavering campaign to stop the activities of unregulated crypto in the country, dealing a huge blow against these unlicensed digital asset firms.
Cambodia blocks access to 16 crypto exchange websites https://t.co/CYILxRKj1a
— Nikkei Asia (@NikkeiAsia) December 3, 2024
The Telecommunication Regulator of Cambodia (TRC) suspended 16 bitcoin exchange websites for breaking state licensing rules. Among those affected by this government crackdown are corporate leaders such Binance, Coinbase, and OKX.
The Cambodian regulatory office implemented restrictions on these crypto exchanges because they lack proper licensing from the Securities and Exchange Regulator of Cambodia (SERC).
However, only the websites of these platforms are blocked. Investors can still access crypto firm’s mobile apps. Analysts are questioning the efficiency of the restrictions since users can still have a way to go around the government’s ruling.
Total crypto market cap as of Dec. 3, 2024 at $3.37 trillion: TradingView.com
Crypto Exchanges Have Been Warned
The SERC said that the actions against these unlicensed crypto firms are part of the government’s effort to regulate the growing digital asset market.
State authorities said that the government has repeatedly reminded crypto exchanges that they are operating without proper authorization, saying that the increasing number of these firms already poses a significant threat to the financial ecosystem and presents a growing risk to users.
Analysts partially blamed the Cambodian government for these flourishing unlicensed crypto exchanges because the Asian country failed to pass and implement any comprehensive laws on cryptocurrency operations.
Hence, the regulatory vacuum offered an opportunity for local and international crypto actors to exploit this weakness.
A scenic view of Cambodia. Image: Travel Inspires
Cambodia’s Crypto Standing
The Southeast Asian country might be facing difficulties in regulating the crypto market, but Cambodia’s position in the global crypto landscape remains unchanged.
Data shows the nation is still in the top 20 countries for retail cryptocurrency adoption per capita. About 70% of Cambodia’s crypto transactions are from centralized exchanges, emphasizing on what will be the possible implications of these restrictions.
According to Chainalysis, more than $49 billion in cryptocurrency transactions were facilitated by Huione Guarantee between 2021 and mid-2024, raising concerns about potential involvement in illicit activities.
Chengyi Ong, who is in charge of strategy for Chainalysis Asia-Pacific, said that broad restrictions might not work well if there is natural demand and real-world uses.
The government took action after being looked at closely for crimes involving crypto. The UN Office on Drugs and Crime said that criminal groups have been using cryptocurrency to hide money and pay for things on the dark web.
Featured image from GVI, chart from TradingView