In Cambodia, the Use and Trading of Crypto Still Illegal
Updated: Aug 15, 2022
The country of Cambodia, located in southeast Asia, announced that the issuing and circulation of crypto are illegal throughout the country. The Cambodian Ministry of Finance states that a newly released document clarifies its position within the Kingdom of Cambodia.
While this document acknowledges that cryptocurrencies have enjoyed immense growth within fintech (financial technology) in the last few years, Cambodia will continue to stand behind this ban for the foreseeable future. Interestingly, the Ministry of Finance, the National Bank of Cambodia, the Securities Commission, and the National Police have all stated similar positions.
The Cambodian Ministry of Finance states that their reasoning behind this decision is "to ensure that the nation can benefit from the rapid development of financial technology and minimize risks."
The reality is the government does seem to favor these innovations within the financial sector; these current bans, as it seems, are temporary to avoid any vast economic fallouts. It seems fintech might be the answer to reviving the national economy; the government is looking to secure consistent growth.
As of October 2020, the National Bank of Cambodia was beginning to adopt blockchain technology to offer a digital version, the Bakong, of its national currency. However, trading this legal tender remains illegal due to its association with economic bubbles.
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