Wnk Systems Looks To Operate Cambodian Virtual Asset Exchange
Cambodian-based Korean tech company Wnk Systems Co Ltd has announced it has obtained preliminary approval for its virtual asset exchange business from the Cambodian Securities and Exchange Regulator of Cambodia (SERC).
Although there is no official word yet from the SERC, reports from a South Korean media outlet suggested the firm has received the preliminary approval, and if confirmed, it would mean Wnk Systems could be the second Cambodian company to operate a digital exchange after Cambodia’s Royal Group launched the nation’s maiden digital assets exchange, Royal Group Exchange (RGX), in January 2024.
RGX had its license approved by the Security Exchange Regulator of Cambodia to operate under SERC’s FinTech Sandbox Regulatory Environment.
The SERC, led by HE Sou Socheat as the SERC Director-general, recently held its first quarterly review meeting on 23rd April 2024, so a decision may have been made at this meeting.
In October 2023, the blockchain firm WnK System Co Ltd announced it was seeking entry into the FinTech Regulatory Sandbox in the securities sector and the SERC conducted an on-site inspection of the company on October 2, 2023, to assess its digital asset trading system.
Who Are WnK System Co Ltd?
WnK System Co Ltd claims to be “Cambodia’s foremost tech company, leading in IT, Blockchain, and E-commerce services with a focus on the latest blockchain technology.”
Kang Jae-ho, CEO of Wnk Systems, said, “If the Cambodia Securities and Exchange Supervisory Commission receives final approval, it will be possible to start the business at the end of July (2024)” He added, “We are making great efforts to exchange blockchain technology between Korea and Cambodia.”
Cambodian Regulations On Digital Assets
The Cambodian government issued a Prakas on the FinTech Regulatory Sandbox in the Securities Sector in August 2023 before surprisingly allowing the launch of the digital assets exchanges in 2024.
In March 2024, the National Bank of Cambodia again reaffirmed it does not allow banks or financial institutions to currently handle transactions associated with cryptocurrencies and there seems to be some disagreements about how this will move forward as the SERC is the governing body for all securities in the country.
NBC added that it was looking to regulate some crypto assets which meet the criteria in its draft Prakas on Commercial Banks and Payment Service Providers’ Activities Related to Cryptoassets but safeguarding financial stability was still key.