Cambodia Blocks Access To 16 Major Crypto Exchange Websites
Cambodia has surprisingly blocked access to 16 major crypto exchange websites including Binance, Coinbase, and OKX, which follows the circulation of a government notice from the Telecommunication Regulator of Cambodia (TRC) at the end of November 2024.
Timing Of Directive In the Middle Of Crypto Bull Run
These are indications that the Cambodian regulators are ramping up efforts to regulate cryptocurrency but the timing of the decision will confuse adopters of crypto as the markets have been surging since pro-crypto US President Donald Trump won the 2024 elections, a bull run which is expected to continue well into 2025.
Furthermore, the Cambodian government has been working with exchanges, notably Binance, for several years to familiarise itself with the platform and establish sandbox initiatives. Binance has had a partnership with the Securities and Exchange Regulator of Cambodia (SERC) to aid in developing crypto regulations, and the leading global crypto exchange has trained Cambodian officials on detecting crypto crimes.
A Binance spokesperson told BeInCrypto:
We are aware of recent developments in Cambodia and we are closely monitoring the evolving situation. At present, multiple overseas cryptocurrency platforms’ websites appear to be inaccessible, including Binance. Binance remains dedicated to cooperating with local authorities, fostering a compliant environment, and supporting the development of blockchain technology.
There are an estimated 200,000 Binance accounts in the Kingdom and a report said online: “The crackdown extends beyond cryptocurrency, with TRC acting chairman Srun Kimsann signing a directive that blocks 102 domains. They have primarily targeted online gambling operations. While website access has been restricted, mobile applications of these platforms remain accessible to users.”
Different Agencies At Odds Over Crypto Regulation?
The TRC-issued directive cited a lack of licenses from the SERC, but it should be noted that these exchanges still do work via their relevant apps in Cambodia. Cambodia allegedly ranks among the top 20 nations globally for retail crypto usage, and centralised exchanges constitute 70 per cent of transactions.
Cambodia actually has been trying to build a robust legal framework to legally develop the local crypto landscape but there have been rumblings of disagreements between national financial institutions such as the National Bank of Cambodia (NBC) and SERC on how to regulate or foster digital assets and crypto. NBC has communicated a sense of caution and is more restrictive.
Nikkei Asia reported that the “directive is part of a broader crackdown targeting 102 domains, with most belonging to online gambling sites.”
Only two companies have secured licenses under SERC’s “FinTech Regulatory Sandbox” program, but their operations are limited to trading digital assets without fiat currency exchanges. In 2024, Cambodia inaugurated the Royal Group Exchange (RGX), the nation’s first digital asset exchange regulated under said sandbox.
Cambodia has adopted multiple digital assets and policies:
- The Sandbox by the Ministry of Economy and Finance (MOEF)
- NBC’s draft Prakas on digital assets and crypto