Cambodia Bans Binance, OKX, and Coinbase Exchanges

Cambodia is blocking web access for 16 major cryptocurrency exchanges to combat crypto crimes.

In an effort to regulate the crypto market, Cambodia has blocked access to sixteen major crypto exchanges, including Binance, OKX, and Coinbase. Nikkei Asia reported that the exchanges failed to obtain the licenses required to operate in the country from the Cambodian Securities and Exchange Regulator.

The ban was imposed on 102 domains by the Cambodian Telecommunications Regulatory Authority on November 20, most of which were related to online gambling linked to crypto exchanges. These exchanges reportedly operate without the proper licenses and authorizations required by Cambodian law. While websites are banned, mobile applications still work.

According to Statista, this ban could be implemented to address the growing population of digital asset users in the country, which is expected to generate revenues of approximately $8 million in 2024. The Digital Assets market in Cambodia will reach $8,031,000 in revenue next year, but growth is expected to decline by 2025.

Regulatory background and context

Binance, one of the exchanges blacklisted in Cambodia, has had a long relationship with the country since signing a memorandum of understanding with SERC aimed at establishing digital currency regulations in 2022.

Additionally, the company partnered with Royal Group, a major business conglomerate in Cambodia, to fuel blockchain adoption and also trained the country’s Ministry of Internal Affairs officials on detecting crypto-related crimes in June 2023. Despite these efforts, the largest cryptocurrency exchange in terms of transaction volume was blocked. Binance spokesperson Lily Lee said about the ban: “We are closely monitoring the developing situation.”

Exchanges are required to be licensed under SERC’s FinTech Regulatory Sandbox, a controlled group program under the Cambodian Non-Banking Financial Services Authority. Two companies are currently licensed to trade digital assets, but without the ability to exchange assets for KHR, fiat currency, or US dollars, the crypto landscape is close to ineffective.

Current and future outlook for digital assets in Cambodia

As previously reported by crypto.news, crypto-related scams are on the rise in Cambodia. According to UNODC, these groups are more active on the dark web, using cryptocurrencies as a form of payment to launder money and engage in illegal activities. Additionally, Huione Guarantee, a crypto-focused platform used by cybercriminals in Southeast Asia, is also linked to Cambodian conglomerate Huione Group, according to Chainalytic.

As stated in the Cambodia Fintech Development Policy, the country’s digital assets arena is likely to take shape over the next few years and become more organized under the Royal Government’s focus on creating a comprehensive regulatory framework on digital assets and decentralized finance systems. The country is fighting financial crimes as a whole.