EddieJayonCrypto
28 Dec 24
The National Bank of Cambodia (NBC) has allowed commercial banks and payment institutions to use "Class 1" assets such as stablecoins, particularly those backed by significant fiat assets, while still maintaining a ban on Bitcoin. This move is seen as a positive step for the regulation of stablecoin...
The National Bank of Cambodia (NBC) has permitted the use of "Class 1" assets such as stablecoins for commercial banks and payment institutions, while maintaining a ban on Bitcoin. This move is seen as positive for the regulation of stablecoins in Cambodia, but the country remains skeptical of cryptocurrencies. The acceptance of stablecoins is considered good news for the crypto industry in Cambodia, despite the country's tightening regulations on digital assets. However, concerns about money laundering have led to increased scrutiny of digital assets by regulators. While crypto adoption has grown in Cambodia, it has been associated with organized crime, creating a negative stigma. The country's regulators have been working with firms like Binance to develop positive regulation, but extending approval to the broader crypto sector may take time. According to local reports, this new move seems like a positive step for the regulation of stablecoins in Cambodia, but the state is clearly skeptical of crypto. Crypto regulation in Cambodia has become stricter throughout 2024, with the country blocking 16 major international exchanges earlier this month. The national bank previously launched a CBDC and deployed cross-border payment transfers but growing concerns about money laundering have made the regulators scrutinize digital assets more. In recent years, Cambodian regulators have worked with firms like Binance to build positive regulation. Although it’s good that Cambodia is approving stablecoins, it may take time to extend this to the broader crypto sector.