Cambodia Prakas on transaction related to cryptoassets (KH – EN)

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The National Bank of Cambodia (NBC) has permitted commercial banks and payment institutions to offer services involving Category 1 crypto assets, such as stable or supported cryptocurrencies, for the first time. Unbacked cryptocurrencies, like Bitcoin, are still forbidden, nevertheless.

NBC revealed the development on December 27 after it was formalized in a prakas released on December 26. The Prakas reflects the nation’s attempt to stay up with international financial developments by regulating operations and enterprises employing digital currency.

Cryptocurrencies are digital assets or currencies that function via decentralized computer networks called blockchains and are not governed by central banks. Globally, these assets are being used more and more for digital platform trading, payments, transfers, and investments in products and services.

All commercial banks or payment institutions that want to offer crypto-related services are required by the mandate to obtain NBC’s prior approval. Authorized institutions are permitted to carry out operations like transferring cryptocurrency assets between accounts, trading cryptocurrency for fiat money or vice versa, and offering custody services for cryptocurrency assets. They are expressly forbidden, meanwhile, from exploiting their clients’ cryptocurrency assets for personal gain.

Due to the considerable risks involved, such as money laundering, fraud, and illegal activity on the black market, cryptocurrency transactions and trading have historically been prohibited in Cambodia.

Credit Video: Poipet Insider

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