As part of its efforts to regulate the cryptocurrency market, Cambodia has blocked access to 16 exchanges. According to a report by Nikkei Asia, the country has restricted access to top cryptocurrency exchanges like Binance, Coinbase, and OKX, alongside other top platforms.Â
In the report, the clampdown emanated after the acting chairman of the Telecommunication Regulator of Cambodia (TRC), Srun Kimsann, signed a directive that blocked more than 102 domains. Furthermore, a spokesperson for the regulator of Cambodia’s telecommunication sector confirmed that online gambling sites are major targets of the clampdown.
By extension, cryptocurrency exchanges suffered the heavy crackdown as a result of their lack of regulatory license from the Securities and Exchange Regulator of Cambodia (SERC). More so, the report established that the restriction will only affect the website version of the exchanges while their mobile applications remain accessible.
Binance Monitoring the Situation
In response to the restriction, a spokesperson for Binance, Lily Lee, disclosed that the exchange is monitoring the situation, confirming that numerous were affected by the crackdown.
On the list, Binance is a surprise inclusion due to the exchange’s active collaborations in the Asian country. Recall that in 2022, the exchange signed a memorandum of understanding with SERC to support the regulation of digital assets in Cambodia.
Similarly, early this year, Binance also assisted in training officials of the Interior Ministry in uncovering crimes related to cryptocurrency. Meanwhile, the enforcement of the digital assets sector is a result of the recent growth of the industry and the usage of cryptocurrency for criminal activities.
How Bad Actors are Using Crypto for Illegal Activities in Cambodia
Recently, the United Nations Office on Drugs and Crime revealed that criminal syndicates in the country are using digital assets for money laundering and dark web deals. Leading blockchain analytics firm Chainalysis reported that Cambodia is among the top 20 countries for retail cryptocurrency use per capita.
However, centralized cryptocurrency exchanges in Cambodia help facilitate 70% of the country’s total cryptocurrency transactions. Despite playing a massive role in the advancement of the country’s digital assets market, most centralized exchanges operating in the country are unregulated.
As revealed, only two virtual assets service providers are registered under the FinTech Regulatory Sandbox program of Cambodia’s SERC.
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