Cambodia's Evolving Stance on Cryptocurrency: Regulation Amidst Caution

Cryptocurrency in Cambodia exists in a legal gray area, with the government expressing caution due to concerns over financial stability and illicit activities. In 2018, the National Bank of Cambodia (NBC), along with the Securities and Exchange Commission of Cambodia and the General Commissariat of National Police, issued a joint statement warning the public about the risks associated with cryptocurrencies, citing their volatility and lack of regulation. Despite these warnings, the Cambodian government has not enacted a blanket ban on cryptocurrencies but maintains a restrictive approach.

In December 2024, the NBC issued Prakas B7-024-735, a regulation that outlines permissible activities related to cryptoassets for commercial banks and payment service institutions. The Prakas prohibits certain activities, such as using client assets for proprietary trading and providing lending services involving cryptoassets. However, it allows for limited engagement with cryptoassets under strict regulatory oversight.

The National Bank of Cambodia appeals that the public be cautious of the propagation to mobilize funds and the operations of buying, selling, trading and settling of cryptocurrency without obtaining license from competent authorities (1).

Cambodia has also developed its own blockchain-based payment system, Bakong, launched in 2020. While not a cryptocurrency, Bakong facilitates digital transactions in the local currency and aims to promote financial inclusion and reduce reliance on cash. The government's focus on Bakong indicates a preference for state-controlled digital financial solutions over decentralized cryptocurrencies.

Source:
(1) National Bank of Cambodia
(2) National Bank of Cambodia

Last updated: 08-05-2025 Disclaimer: This article does not provide legal advice. If you need legal advice, please contact an attorney directly.