Dealing in cryptocurrencies without obtaining a license from relevant authorities has been declared illegal in Cambodia, according to an official statement published Tuesday, June 19.
The joint statement was first penned on May 11 by the National Bank of Cambodia (NBC), the Securities and Exchange Commission of Cambodia (SECC) and the General-Commissariat of National Police, and has now been publicly released on the NBC website. Suggesting that such activities “will cause potential risks to the publics [sic] and society as a whole,” the statement declares:
“Competent authorities clarify that the propagation, circulation, buying, selling, trading and settlement of cryptocurrencies without obtaining license from competent authorities are illegal activities.”
Another statement went on to explain that failure to obtain a license for the above activities “shall be penalized in accordance with applicable laws.”
The three agencies go on to explain that involvement with cryptocurrencies can bring investor risk arising from price volatility, cybercrime, and a lack of consumer protections, further listing several crypto projects – including the alleged Ponzi scheme OneCoin – as examples.
The main objective of the license still hasn’t been stated clearly or what would be required for a successful application, but the requirement is likely to present a notable barrier for investors.
The joint statement marks a notable widening of crypto-focused restrictions kicked off by the NBC in December 2017, when it prohibited domestic financial institutions from offering account services to cryptocurrency investors and traders, according to an earlier report from Phnom Penh Post.
Since then, cryptocurrency related projects such as initial coin offerings (ICOs) and crypto trading activities continued to operate in a gray area, as regulators had yet to publish an explicit legal framework providing clarity for users of the nascent technology.
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