A Southeast Asian country continues its rigorous policy against cryptocurrency platforms because it hampered access to digital asset exchanges. Regulatory officials in Cambodia imposed an iron hand against cryptocurrency players by blocking access to 16 crypto exchanges which include a number of the popular firms corresponding to Coinbase and Binance.

Cambodia Crypto Crackdown

Government officials in Cambodia kept on with their unwavering campaign to stop the activities of unregulated crypto within the country, dealing an enormous blow against these unlicensed digital asset firms.

Cambodia blocks access to 16 crypto exchange web sites https://t.co/CYILxRKj1a

— Nikkei Asia (@NikkeiAsia) December 3, 2024

The Telecommunication Regulator of Cambodia (TRC) suspended 16 bitcoin exchange web sites for breaking state licensing rules. Amongst those affected by this government crackdown are corporate leaders such Binance, Coinbase, and OKX.

The Cambodian regulatory office implemented restrictions on these crypto exchanges because they lack proper licensing from the Securities and Exchange Regulator of Cambodia (SERC).

Nonetheless, only the web sites of those platforms are blocked. Investors can still access crypto firm’s mobile apps. Analysts are questioning the efficiency of the restrictions since users can still have a option to go around the federal government’s ruling.

Total crypto market cap as of Dec. 3, 2024 at $3.37 trillion: TradingView.com

Crypto Exchanges Have Been Warned

The SERC said that the actions against these unlicensed crypto firms are a part of the federal government’s effort to control the growing digital asset market.

State authorities said that the federal government has repeatedly reminded crypto exchanges that they’re operating without proper authorization, saying that the increasing variety of these firms already poses a major threat to the financial ecosystem and presents a growing risk to users.

Analysts partially blamed the Cambodian government for these flourishing unlicensed crypto exchanges since the Asian country did not pass and implement any comprehensive laws on cryptocurrency operations.

Hence, the regulatory vacuum offered a possibility for local and international crypto actors to use this weakness.

A scenic view of Cambodia. Image: Travel Inspires

Cambodia’s Crypto Standing

The Southeast Asian country may be facing difficulties in regulating the crypto market, but Cambodia’s position in the worldwide crypto landscape stays unchanged.

Data shows the nation continues to be in the highest 20 countries for retail cryptocurrency adoption per capita. About 70% of Cambodia’s crypto transactions are from centralized exchanges, emphasizing on what shall be the possible implications of those restrictions.

In keeping with Chainalysis, greater than $49 billion in cryptocurrency transactions were facilitated by Huione Guarantee between 2021 and mid-2024, raising concerns about potential involvement in illicit activities.

Chengyi Ong, who’s answerable for strategy for Chainalysis Asia-Pacific, said that broad restrictions may not work well if there may be natural demand and real-world uses.

The federal government took motion after being checked out closely for crimes involving crypto. The UN Office on Drugs and Crime said that criminal groups have been using cryptocurrency to cover money and pay for things on the dark web.

Featured image from GVI, chart from TradingView