Key Takeaways
- Cambodia’s central bank approved stablecoins for financial firms while banning unbacked assets like Bitcoin.
- Banks can process crypto transactions, transfers, and custody services under strict regulatory oversight.
- Firms must secure NBC permits before offering crypto services, ensuring compliance and market stability.
Recently, Cambodia’s central bank has approved regulated stablecoin services for banks and financial institutions while banning unbacked assets like bitcoin (BTC). According to local press, the National Bank of Cambodia (NBC) announced the move as part of efforts to modernize payments and strengthen financial oversight.
Notably, the framework allows financial institutions to process stablecoin transactions under strict compliance rules. Per the report, “Institutions granted authorisation can engage in activities such as exchanging crypto assets for fiat currencies or vice versa, transferring crypto assets between accounts and providing custody services for crypto assets.”
In addition, it prohibits unbacked cryptocurrencies, citing market risks and concerns over money laundering.
Crypto Regulation and Market Impact
Cambodia’s decision aligns with global trends favoring regulated digital assets. For context, the new rules promote stablecoins backed by fiat currencies or real-world assets to ensure stability.
While this move is a step toward integrating blockchain-based payments into Cambodia’s economy, the Bitcoin ban may limit broader crypto adoption.
Focus on Stability and Security
The NBC emphasized the need for financial security and consumer protection as digital assets gain popularity. As stated in the report, “Historically, Cambodia has banned cryptocurrency transactions and trading due to the associated high risks, including money laundering, fraud and illicit activities within the black market.”
Under the rules, licensed banks can offer crypto-related services, but only with regulated tokens approved by authorities. This ensures that transactions remain traceable and compliant with anti-money laundering laws.
Future Outlook
Cambodia’s policy highlights its focus on stable growth while excluding volatile assets like Bitcoin. Also, it could influence neighboring countries considering similar frameworks for digital finance regulation.
Market participants expect the shift to attract institutional investors and encourage blockchain adoption for payments. Meanwhile, some warn that excluding Bitcoin may push unregulated trading into gray markets.
