In Asia, the Cambodian Ministry of Finance and Economics announced on Wednesday that no-issuance and circulation of cryptocurrencies would be allowed in the country.
The agency, which is responsible for the administration of financial and economic policy and affairs in the Kingdom of Cambodia, released a document, stating that despite the rapid growth of fintech and its significant impact on the global economy in recent years, the Cambodian government has not changed its policy of banning the use of crypto coins.
According to the document, the National Bank of Cambodia, the Cambodian Ministry of Finance and Economics, the Securities Commission, and the National Police have jointly issued a statement that prohibits any issuance, circulation, and trading of cryptocurrencies in the country. So far, the Cambodian government has not awarded a business license to any crypto firm in the nation, meaning that it is illegal to issue, circulate, and trade crypto assets in Cambodia.
The Cambodian Ministry of Finance and Economics further stated that currently Cambodia’s draft FinTech Development Policy is in force to ensure that the nation can benefit from the rapid development of financial technology and minimize risks.
The agency also mentioned that the Cambodian government has introduced some new policies and measures in order to promote the revitalization and recovery of the economy after the pandemic of COVID-19. The government believes fintech is one of the key policies that would enable such recovery.
Gearing Up for CBDC
The latest move indicates that Cambodian authorities are taking more steps to crack down on cryptocurrencies.
In October 2020, the Central Bank of Cambodia adopted blockchain technology to offer digital versions of its own digital currency to steer citizens away from trading in what many perceive to be a bubble associated with cryptocurrencies.
During that time, The National Bank of Cambodia launched its digital currency, Bakong – a blockchain-based digital payment system – as part of effort to wean people off US dollar transactions with a digital alternative and to encourage cashless transactions.
Since trading cryptocurrency is illegal in Cambodia, trading levels have been quite low. However, many local investors are actively trading cryptos through foreign platforms.
Image source: Shutterstock