A Southeast Asian country is continuing its rigorous policy against cryptocurrency platforms as it hinders access to digital asset exchanges. Regulatory officials in Cambodia imposed an iron hand on cryptocurrency players blocking access to 16 crypto exchanges including some of the popular companies like Coin base and Binance.
Crypto Crackdown in Cambodia
Government officials in Cambodia continued their unwavering campaign to stop the activities of unregulated crypto in the country, dealing a massive blow to these unlicensed digital asset companies.
Cambodia blocks access to 16 crypto exchange websites https://t.co/CYILxRKj1a
— Nikkei Asia (@NikkeiAsia) December 3, 2024
Cambodia’s Telecommunications Regulator (TRC) has suspended 16 bitcoin exchange websites for violating state licensing rules. Among those affected by this government crackdown are business leaders such as Binance, Coinbase, and OKX.
The Cambodian Regulatory Agency has implemented this restrictions on these crypto exchanges because they do not have the proper licenses from the Securities and Exchange Regulator of Cambodia (SERC).
However, only the websites of these platforms are blocked. Investors can still access the crypto company’s mobile apps. Analysts question the effectiveness of the restrictions, as users may still have a way 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 the actions against these unlicensed crypto companies are part of the government’s efforts to regulate the growing digital asset market.
State authorities said the government has repeatedly reminded crypto exchanges that this is the case operate without proper authorizationsaying that the increasing number of these companies is already posing a significant threat to the financial ecosystem and posing growing risk to users.
Analysts partly blamed the Cambodian government for these booming unlicensed crypto exchanges, as the Asian country failed to adopt and implement comprehensive laws on cryptocurrency operations.
The regulatory vacuum thus provided an opportunity for local and international crypto actors to exploit this weakness.
A scenic view of Cambodia. Image: Travel Inspires
Cambodia’s Crypto Status
The Southeast Asian country may have problems regulating the crypto market, but Cambodia’s position in the global crypto landscape remains unchanged.
Data shows that the country still ranks among the top 20 retail countries cryptocurrency adoption per capita. About 70% of crypto transactions in Cambodia come from centralized exchanges, highlighting what the potential implications of these restrictions will be.
According to Chainalysis, more than $49 billion in cryptocurrency transactions were powered by the Huione Guarantee between 2021 and mid-2024, raising concerns about possible involvement in illegal activities.
Chengyi Ong, who is responsible for strategy for Chainalysis Asia-Pacific, said broad restrictions may not work well if there is natural demand and real-world usage.
The government took action after being closely investigated for crimes involving crypto. The UN Office on Drugs and Crime said criminal groups have used cryptocurrency to hide money and pay for things on the dark web.
Featured image of GVI, chart from TradingView