Binance, Coinbase access restricted in Cambodia amid tightening crypto regulations
Key Takeaways
- Cambodia has blocked access to 16 cryptocurrency exchange websites, including Binance and Coinbase, due to lack of licenses.
- Despite restrictions, Cambodia remains a leading country for retail crypto use per capita.
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Cambodia has cut off access to the websites of 16 crypto exchanges, including major ones like Binance, Coinbase, and OKX as part of the country’s efforts to regulate the crypto market, Nikkei Asia reported on Dec. 3, citing a spokesperson for the Telecommunication Regulator of Cambodia (TRC) which oversees the country’s telecommunications sector.
According to a directive signed by acting TRC chairman Srun Kimsann, the regulator has blocked 102 domains, primarily targeting online gambling sites.
Access to the crypto exchanges’ websites has been restricted due to a lack of licenses from the Securities and Exchange Regulator of Cambodia (SERC), the report noted. While online platforms are blocked, mobile apps are still accessible.
The move comes despite Binance’s existing partnerships in Cambodia, including a 2022 memorandum of understanding with SERC to help develop digital currency regulations and an agreement with the Royal Group, one of Cambodia’s largest conglomerates.
In June 2023, Binance provided training to Interior Ministry officials on crypto-related crime detection.
“We are closely monitoring the evolving situation,” said Binance spokesperson Lily Lee, noting that Binance was not the only platform affected.
Currently, only two companies have received licenses to operate digital assets businesses under SERC’s “FinTech Regulatory Sandbox” program. These licensed entities can trade digital assets but cannot exchange them for Cambodia’s legal tender – the riel and US dollars – or other fiat currencies.
Despite restrictions, Cambodia ranks among the top 20 countries globally for retail crypto use per capita, according to analytics firm Chainalysis. Centralized exchanges account for 70% of crypto transactions in the country.
“Where there is organic demand and real world applications, broad-based restrictions on cryptocurrency usage are not very effective,” said Chengyi Ong, Chainalysis’s head of Asia-Pacific policy.
The country has faced scrutiny over crypto-related criminal activities. The UN Office of Drugs and Crime reported that criminal organizations in Cambodia are using crypto for dark-web payments and money laundering.
Chainalysis identified over $49 billion in crypto transactions between 2021 and mid-2024 facilitated by Huione Guarantee, a crypto-led marketplace within the Cambodian conglomerate Huione Group.
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Author: Vivian Nguyen
