In a joint statement with the National Bank of Cambodia, the Securities Commission, and the National Police Agency, the Finance Ministry of Cambodia, Aun Pornmoniroth, emphasised that no crypto company has been granted a business licence. Execution of crypto-related activities in the nation is still banned. The Cambodian government still has not approved the issuance or usage of any crypto. It is still illegal to generate, distribute, or exchange cryptocurrencies in Cambodia.
According to a China News Service article, the ministry has acknowledged that the fintech industry is fast growing. However, it still maintained its long-standing ban on crypto trading. According to the finance ministry, Cambodia is working on a fintech development policy that will ensure that the government benefits fully from the development of this emergent technology while avoiding the risks.
Cambodia and cryptocurrency
Cambodia has announced the launch of a digital currency supported by the government. The idea is called “Project Bakong,” and it aims to create a “blockchain-based, peer-to-peer payment and money transfer network.” The goal of the project is to investigate the use of an alternative technology platform to improve Cambodia’s payment system and promote the use of the Cambodian Riel (“KHR”).
Virtual currencies, on the other hand, are not officially defined or regulated in Cambodian law. Electronic money in Cambodia is governed by Prakas No. B14-107-161 on Payment Service Provider Management. Its provisions, however, are not explicitly aimed at cryptocurrency.
In a joint statement, the National Bank of Cambodia, the Securities and Exchange Commission of Cambodia, and the General-Commissariat of the National Police of Cambodia stated that “the propagation, circulation, buying, selling, trading, and settlement of cryptocurrencies without obtaining a licence from competent authorities are illegal activities.”
Cambodian authorities announced in 2018 that the distribution or dealing of cryptocurrencies without a licence was banned. Authorities cautioned at the time that crypto activities could pose a threat to the public and society. Some of the dangers listed in the May 11, 2018 announcement include the volatility of crypto currencies and their lack of backing by an underlying asset. Other hazards listed in the statement include a lack of consumer protection, cybercrime, and the loss of funds as a result of hacking.
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