Cambodia Blocks 16 Crypto Exchanges: Binance, Coinbase, OKX  Affected

Cambodia has blocked access to 16 cryptocurrency exchanges, including major players like Binance and Coinbase according to the Nikkei report. Authorities aim to control the industry and address rising concerns over crypto-related fraud.

The Telecommunication Regulator of Cambodia (TRC) issued a directive to block 102 domains linked to these exchanges. Websites were restricted because the exchanges lacked licenses from the Securities and Exchange Regulator of Cambodia (SERC). Despite this, the mobile apps of these platforms remain active.

Cambodia launched its “FinTech Regulatory Sandbox” program in 2022 to establish a regulated framework for digital assets. However, only two companies have been licensed to operate under this program. Binance has also partnered with SERC to help develop the country’s crypto regulations. A Binance spokesperson stated that the company is closely monitoring the evolving situation.

Cambodia remains one of the top 20 countries for global retail crypto use. Retail users conduct 70% of crypto transactions through centralized exchanges. This high adoption rate persists despite the government’s efforts to regulate the sector.

The regulatory effort faces challenges due to differing views between Cambodia’s key financial institutions. The National Bank of Cambodia (NBC) has taken a more cautious stance, opposing rapid adoption of digital assets. Meanwhile, SERC has pushed for a regulatory environment that supports the crypto sector. This lack of alignment has slowed progress on establishing a cohesive legal framework.

Cambodia has also faced increased scrutiny over crypto-related criminal activities. Criminal organizations reportedly use cryptocurrencies for illegal transactions, including dark-web payments. According to the UN Office of Drugs and Crime, Cambodia has become a hotspot for crypto scams.

One notable case involved the Huione Pay platform, which allegedly processed over $49 billion in cryptocurrency transactions from 2021 to 2024. Investigations linked the platform to scam operations across Southeast Asia, raising concerns about the misuse of digital assets.

Authorities are working to balance the benefits of crypto adoption with the need for strict regulation. The crackdown and partnerships with global entities like Binance signal efforts to create a safer and more regulated digital asset environment.