The Cambodian government has not greenlighted the issuing or use of any cryptocurrency in the country, a report has said. The report, which cites a document recently released by the Ministry of Finance and Economics, said it is still illegal to create, distribute, or trade cryptocurrencies in Cambodia.
According to a China News Service report, while the ministry does concede that the fintech industry is growing rapidly, it nonetheless reiterated that the long-standing ban on crypto trading remains in force. Cambodian authorities announced in 2018 that the circulation or trading of cryptocurrencies without a license was illegal.
At the time, authorities warned that crypto activities had the potential to cause risks to the public and society. The volatility of crypto assets as well as their lack of backing by an underlying asset are some of the risks mentioned in the May 11, 2018 statement. Lack of consumer protection, cybercrime, and loss of funds due to hacking are the other risks that were mentioned in the statement.
Cambodia Drafting Fintech Policy
In a new statement jointly issued with the National Bank of Cambodia, the Securities Commission, and the National Police Agency, the Finance ministry reiterated that no cryptocurrency company has been issued a business license.
Meanwhile, the China News Service report revealed that Cambodia is currently drafting its fintech development policy which, according to the finance ministry, ensures the country fully benefits from the development of this emerging technology while minimizing the associated risks.