In a decisive move to tighten control over its cryptocurrency market, Cambodia has blocked access to 16 major crypto exchanges, including global giants Binance, Coinbase, and OKX.
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While the websites are no longer accessible in the country, the mobile applications of these platforms remain functional, reported Nikkei Asia on 3 December 2024.
CAMBODIA BRICKS BINANCE & COINBASE SITES
16 exchange sites just got blocked in Cambodia, including Binance and Coinbase.
Their Apps remain online however.
The move may be one of optics as the country comes under increasing scrutiny for possible fraud activity.
Source:… pic.twitter.com/MbP4DRuuqW
— Mario Nawfal’s Roundtable (@RoundtableSpace) December 3, 2024
The crackdown, enforced by the Telecommunication Regulator of Cambodia (TRC) restricts access to 102 domains, primarily tied to online gambling and unlicensed crypto activities.
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Regulatory Push Amid Unlicensed Operations
The banned exchanges were found operating without proper licenses from the Securities and Exchange Regulator of Cambodia (SERC), which oversees the country’s crypto market under its FinTech Regulatory Sandbox program.
Currently, only two companies hold licenses to trade digital assets in Cambodia, though they are restricted from exchanging cryptocurrencies for the local currency, the riel, or any other fiat currencies.
The restrictions follow multiple warnings from Cambodian authorities regarding the necessity of obtaining proper licenses for crypto operations. Acting TRC Chairman Srun Kimsann, who signed the directive, stated that the crackdown targets platforms undermining regulatory integrity.
This regulatory action comes despite Binance’s established partnerships in Cambodia. The company had previously signed a memorandum of understanding (MoU) with SERC in 2022 to assist in developing crypto regulations and collaborated with Royal Group, a major Cambodian conglomerate, to promote blockchain adoption.
Binance also provided training for Cambodia’s Interior Ministry officials earlier this year to combat crypto-related crimes.
Lily Lee, a Binance spokesperson, acknowledged the ban, stating, “We are closely monitoring the evolving situation,” while emphasizing that multiple platforms were affected by the restrictions.
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Global Crypto Crackdowns Reflect Increasing Regulatory Scrutiny
In September 2024, German authorities shut down 47 crypto exchanges, citing violations of anti-money laundering (AML) laws. The closures were attributed to the platforms’ failure to implement proper Know Your Customer (KYC) protocols, which allowed for anonymous transactions.
Similarly, in November 2024, the UK’s Financial Conduct Authority (FCA) unveiled a roadmap for stricter cryptocurrency regulations. The proposed measures include capital requirements and insider trading rules, which are slated for implementation by 2026.
Meanwhile, Coinbase continues to face significant regulatory hurdles in the United States. In June 2023, the US Securities and Exchange Commission (SEC) charged Coinbase with operating as an unregistered securities exchange, broker, and clearing agency.
Despite the company’s attempt to dismiss the case, a New York court ruled in March 2024 that the SEC’s allegations could proceed, highlighting the growing scrutiny on crypto exchanges in the US.
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Combating Financial Crimes and Market Risks
The UN Office of Drugs and Crime (UNODC) has highlighted the role of cryptocurrencies in facilitating money laundering and dark-web transactions within the region.
A recent report by Chainalysis identified over $49 billion in crypto transactions between 2021 and mid-2024 linked to Huione Guarantee, a marketplace associated with the Cambodian conglomerate Huione Group.
The regulatory vacuum in Cambodia has also allowed unregulated platforms to exploit consumer trust. While the country has made strides in developing a digital assets framework, including its Fintech Development Policy, enforcement mechanisms remain nascent.
According to Chainalysis, the country ranks among the top 20 nations for retail crypto adoption per capita, with centralized exchanges accounting for 70% of cryptocurrency transactions.
Cambodia’s focus on fostering a legal and regulated crypto market is evident in its partnerships with global industry leaders like Binance.
However, the ban highlights the difficulty of maintaining this balance, as the country grapples with regulatory challenges while striving to encourage blockchain adoption.
The post Cambodia Shuts Down 16 Exchanges Including Binance And Coinbase appeared first on 99Bitcoins.
