Cambodia blocks Access to Binance, Coinbase as well as OKX within Crypto Market Crackdown

Cambodia has taken significant steps to regulate its cryptocurrency market by blocking access to 16 major crypto exchange websites, including well-known platforms like Binance, Coinbase, and OKX. This directive was confirmed by the Telecommunication Regulator of Cambodia (TRC) and aims to address the lack of proper licensing for these exchanges.

Details of the Ban

– Official Announcement: The TRC, led by interim chairman Srun Kimsann, issued a decree that restricts access to 102 domains, primarily targeting online gambling sites. However, mobile applications for these exchanges remain accessible to users in Cambodia.

– Licensing Issues: The blocked exchanges did not possess licenses from the Securities and Exchange Regulator of Cambodia (SERC). Currently, only two companies are licensed under SERC’s “FinTech Regulatory Sandbox” program, allowing them to trade digital assets but prohibiting exchanges with Cambodia’s legal tender or other fiat currencies.

Background on Binance

Despite having previously established partnerships in Cambodia—such as a 2022 agreement with SERC to assist in developing digital currency regulations—Binance is among the affected platforms. Earlier this year, Binance also provided training to Cambodian officials on detecting cryptocurrency-related crimes.

A spokesperson for Binance, Lily Lee, stated that the company is closely monitoring the situation and acknowledged that many platforms are impacted by these restrictions.

Crypto Landscape in Cambodia

Despite these regulatory challenges, Cambodia ranks among the top 20 countries globally for retail cryptocurrency usage per capita. Centralized exchanges account for approximately 70% of all crypto transactions in the country. However, experts have expressed skepticism about the effectiveness of such bans, arguing that “where there is organic demand and real-world applications, broad-based restrictions on cryptocurrency usage are not very effective,” according to Chengyi Ong from Chainalysis.

Concerns Over Crypto-Related Crimes

Cambodia has faced scrutiny over its association with crypto-related criminal activities. The UN Office of Drugs and Crime reported that criminal organizations in the country utilize cryptocurrency for dark-web transactions and money laundering. Between 2021 and mid-2024, over $49 billion in crypto transactions were identified as being facilitated through Huione Guarantee, a marketplace linked to various cybercrimes.

The Cambodian government’s recent actions reflect its ongoing struggle to balance the burgeoning crypto market with the need to regulate and mitigate illegal activities associated with digital assets. As the country continues to navigate these challenges, it remains crucial for authorities to establish clear guidelines that support innovation while ensuring consumer protection and compliance with legal standards.