Cambodian Regulators Signal Plans to Oversee Virtual Assets and Crypto

Cambodian financial authorities have indicated that they intend to build a regulatory framework for virtual assets, including cryptocurrencies. In a joint notice issued on September 23, the Securities and Exchange Regulator of Cambodia and the National Bank of Cambodia said the fast-growing market could create macroeconomic risks, consumer-protection concerns and money-laundering threats.

The notice, titled Regulation of Virtual Assets and Virtual Asset Service Providers, said the two agencies have been watching the rapid expansion of the sector and the increasing use of digital assets for speculative investment as well as for payments.

It described virtual assets as digital representations of value that rely mainly on cryptography and distributed ledger or similar technology. Such assets can be traded or transferred digitally and used for payment or investment purposes.

The regulators also pointed to related policy issues, including tax evasion and cybercrime.

Building on Earlier Warnings

A 2018 joint statement by SERC, NBC and the General Commissariat of National Police had already warned that individuals or companies dealing in cryptocurrencies without the required licence could face penalties under existing law.

The latest notice said those risks have become greater as virtual assets gain wider global adoption, operate across borders and connect more closely with the mainstream financial system.

Because of those developments, the agencies said a comprehensive, consistent and coordinated regulatory response is needed.

Proposed Principles and Licensing Steps

The regulators said oversight could improve transparency in financial markets, expand access to financial services, support economic empowerment and contribute to public revenues.

They proposed a harmonised framework guided by three principles: protecting investors and consumers, maintaining market integrity and supporting innovation.

Under the announced measures, licensed commercial banks that want to offer virtual-asset-related services to customers must first obtain approval from the National Bank of Cambodia.

Non-bank legal entities that are licensed by the NBC must obtain a separate licence from the Securities and Exchange Regulator of Cambodia before providing such services.

SERC and NBC also said they would cooperate on coordination mechanisms as the virtual asset market develops, with periodic reviews of that cooperation.

Public Caution

The agencies reminded the public that Cambodian law does not recognise virtual assets as legal tender, and they are not guaranteed by the government or the central bank.

They warned that virtual assets are highly volatile and carry significant risks, advising the public to assess those risks carefully before investing or transacting.