The National Bank of Cambodia (NBC) has taken an important step by allowing commercial banks and payment institutions to offer services related to Tier 1 crypto assets, which include backed and stablecoin cryptocurrencies. This is the first time that the NBC has authorized such operations, following a directive issued on December 26 and officially announced on December 27, as reported by the newspaper. Phnom Penh Post. However, unsecured digital currencies, including Bitcoin, remain prohibited under the new framework.
Regulation of digital currencies in Cambodia
The directive is part of Cambodia’s efforts to regulate digital currencies and align with global financial trends. Under the new rules, financial institutions must obtain prior approval from the NBC before engaging in services involving crypto assets. Licensed institutions will be allowed to exchange cryptocurrencies for fiat, facilitate transfers of crypto assets between accounts, and offer custody services. However, these entities are explicitly prohibited from using customers’ crypto assets for their own benefit.
Historically, Cambodia has taken a cautious stance towards cryptocurrencies due to concerns over potential risks including fraud, money laundering and other illicit activities. These concerns have previously led to the banning of crypto trading and transactions within the country.
In May, Chea Serey, governor of the National Bank of Cambodia, expressed optimism about the potential of digital currencies. She stressed that such currencies could strengthen the Cambodian riel and reduce dependence on the US dollar. This sentiment aligns with NBC’s measured approach to embracing stablecoins while maintaining a strong stance against speculative and unregulated cryptocurrencies.
đź“ś Cambodia has authorized commercial banks and payment institutions to offer services involving Category 1 crypto assets, such as backed or stablecoins.#Cambodia #Regulations
– Cryptonews.com (@cryptonews) December 27, 2024
Expert Opinions on Cambodia’s Crypto Regulations
Economic researcher Hong Vanak from the Royal Academy of Cambodia shared his insights on the complexities of regulating cryptocurrencies. He noted that the decentralized nature of digital currencies complicates efforts to track, tax and control these assets. According to Vanak, while cryptocurrencies may offer limited direct benefits to the Cambodian economy, institutions providing crypto-related services could generate revenue through user fees.
Crackdown on crypto exchanges
In a related development earlier this month, Cambodia blocked access to 16 cryptocurrency exchange websites, including major platforms such as Binance, Coinbase and OKX. The move was part of a broader initiative to regulate the digital asset market and enforce local laws. The action, based on a directive signed by the acting chairman of the Telecommunications Regulator of Cambodia (TRC), Srun Kimsann, targeted 102 domains, most of which were associated with online gambling. The targeted crypto exchange websites did not have the necessary licenses from the Securities and Exchange Regulator of Cambodia (SERC).
Even though access to these websites has been restricted, the platforms’ mobile applications remain operational. Currently, only two companies are approved under the SERC’s FinTech Regulatory Sandbox program. Although these companies can trade digital assets, they are not allowed to exchange cryptocurrencies for Cambodian riel or other fiat currencies.
Cambodia’s crypto landscape
Despite strict measures, Cambodia remains a leader in retail cryptocurrency use per capita, according to analytics firm Chainalysis. Centralized exchanges account for around 70% of the country’s crypto transactions. However, Cambodia’s crypto activities have come under international scrutiny due to concerns about criminal misuse.
The United Nations Office on Drugs and Crime (UNODC) has highlighted the use of cryptocurrencies by criminal organizations in Cambodia for activities such as money laundering and dark web transactions. Additionally, Chainalysis data revealed that more than $49 billion in cryptocurrency transactions between 2021 and mid-2024 were facilitated by Huione Garantie, a marketplace associated with Cambodian conglomerate Huione Group.
CatSlap Token: A unique coin with rewards for winning
CatSlap ($SLAP) is a meme-inspired cryptocurrency that stands out by introducing a playful “Slap-to-Earn” model. This innovative concept allows users to earn rewards by virtually slapping their favorite meme characters. Designed to compete with popular meme tokens featuring frogs and dogs, CatSlap is positioning itself as the fiercest feline in the crypto ecosystem. The project offers an exciting browser game, in which players compete to achieve high scores and contribute to their country’s ranking in the global Slapometer rankings. This gamified approach adds a unique layer of interaction, making CatSlap more than just a meme token: it’s a community-driven experience.
CatSlap tokenomics is carefully designed to support its ecosystem and encourage long-term engagement. With a total supply of 9 billion tokens, half is allocated to liquidity on Uniswap, ensuring stability and accessibility. Additional allocations include 20% for staking rewards, 10% for community incentives, 10% for the development fund and an additional 10% reserved for the team, with this share vesting over a ten-year period to foster trust and transparency. The project offers secure staking opportunities through platforms such as Best Wallet, allowing users to securely purchase and stake SLAP tokens while earning rewards.
CatSlap has gained attention not only for its innovative gameplay, but also for its emphasis on community building and sustainability. By combining entertainment with tangible crypto benefits, CatSlap is carving out a niche in the competitive coin market and aims to establish itself as a leader in this rapidly evolving space.
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