The National Bank of Cambodia (NBC) has authorized commercial banks and payment service providers (PSPs) to offer limited services involving crypto assets, excluding unbacked cryptocurrencies.
The policy update, detailed in a directive issued on December 26, 2024, permits the handling of stablecoins and tokenized traditional assets under strict regulations.
According to the directive, banks and PSPs may conduct crypto-related transactions for themselves and provide similar services to customers, provided they obtain prior approval from the central bank. Approved services include exchanging crypto assets for fiat currencies, facilitating transfers, and offering custody solutions. However, using customers’ crypto holdings for institutional purposes is strictly prohibited.
The directive enforces strict regulations to enhance compliance and minimize risk. Commercial banks are barred from independently issuing crypto assets and engaging in any direct or indirect transactions with unbacked cryptocurrencies, such as Bitcoin. Trading in derivatives linked to these assets is also banned.
Also, service providers are required to obtain prior approval from the NBC before offering crypto-related services.
The central bank emphasized that these measures aim to maintain financial stability while accommodating innovation. It considers stablecoins and tokenized assets less risky due to their backing by tangible assets or fiat currencies.
This regulatory update reflects Cambodia’s cautious but evolving stance on cryptocurrency. Historically, Cambodia has maintained a restrictive stance on cryptocurrencies, banning trading and transactions over concerns about money laundering and fraud.
The development follows NBC’s move to block access to 16 unlicensed crypto exchange websites earlier this month. Binance, Coinbase, and OKX were reportedly among the affected platforms. Only two licensed entities operate within Cambodia’s regulatory sandbox, and neither is permitted to facilitate exchanges between crypto assets and fiat currencies due to risks of scams and illicit activities.
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