Binance And Coinbase Hit As Cambodia Blocks 16 Crypto Platforms

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As a seasoned researcher with extensive experience in the digital assets landscape across Asia, I find myself both intrigued and concerned by the recent developments in Cambodia. The government’s crackdown on unlicensed crypto exchanges seems to be a necessary step towards regulatory compliance, but it raises some interesting questions about the efficiency of such measures.

In Southeast Asia, a specific country maintains a firm stance on cryptocurrency platforms, restricting access to digital asset trading platforms. Regulatory bodies in Cambodia have taken a strong approach towards cryptocurrencies by preventing users from accessing 16 crypto exchanges, including well-known companies like Coinbase and Binance.

Cambodia Crypto Crackdown

Officials within the Cambodian government persistently cracked down on unauthorized cryptocurrency operations within the nation, effectively shutting down these unregistered digital currency companies.

Cambodia blocks access to 16 crypto exchange websites

— Nikkei Asia (@NikkeiAsia) December 3, 2024

16 Bitcoin exchange sites, including well-known companies like Binance, Coinbase, and OKX, were temporarily halted by the Cambodian Telecommunications Regulator (TRC) for violating state licensing regulations. This government action is part of a broader crackdown on these platforms.

The Cambodian government has placed limitations on cryptocurrency exchanges due to their failure to obtain necessary licenses from the Securities and Exchange Regulator of Cambodia (SERC).

Although the sites of these cryptocurrency platforms are restricted, their mobile applications remain accessible for investors. This has analysts pondering the effectiveness of these restrictions as users appear to find ways to circumvent the government’s regulations.

Crypto Exchanges Have Been Warned

According to the SERC, cracking down on unauthorized cryptocurrency companies is a move by the government to control and manage the rapidly expanding digital assets market.

Officials have warned cryptocurrency exchanges on multiple occasions that they are functioning illegally because they lack necessary approval, stating that the rising number of such companies now endangers the financial system and poses an escalating danger to customers.

analysts partly attributed the growth of unregulated cryptocurrency exchanges in Cambodia to the government, as they have yet to establish and enforce comprehensive legislation regarding cryptocurrency transactions.

Consequently, the absence of regulations presented a chance for both local and global cryptocurrency players to take advantage of this gap.

Cambodia’s Crypto Standing

Despite potential challenges in controlling their cryptocurrency market, Cambodia’s standing within the international crypto sphere stays consistent.

The data indicates that our country remains among the top 20 globally in terms of retail adoption of cryptocurrencies per capita. Approximately 70% of all crypto transactions in Cambodia originate from centralized exchanges, suggesting potential repercussions if regulations are imposed on these platforms.

As per Chainalysis’ findings, Huione Guarantee handled over $49 billion worth of cryptocurrency transactions from the year 2021 up until mid-2024. This high volume has sparked worries regarding potential links to illegal activities.

Chengyi Ong, the head of strategy at Chainalysis’ Asia-Pacific branch, stated that overly broad regulations may not be effective when there is genuine demand and practical applications in place.

After undergoing thorough scrutiny due to alleged cryptocurrency-related crimes, the government decided to intervene. According to the United Nations Office on Drugs and Crime, these illicit organizations utilize digital currencies to mask funds and purchase goods in the hidden corners of the internet.

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2024-12-03 21:12