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Cambodia has imposed a ban on the use of 16 sites for the exchange of cryptocurrencies, some of which are the largest such as Binance, Coinbase, OKX, among others. Such steps are parts of the efforts of the government for better regulations in the crypto space as focused in the report by Nikkei Asia on 3rd December.
The Telecommunication Regulator of Cambodia (TRC), which is responsible for the telecommunications of the state, announced the suspension of access to 16 sites.
A directive signed by acting TRC chairman Srun Kimsann revealed that there are 102 designations, which are said to have been included in the ‘do not use’ category, the majority of which relate to carrying out online gambling. This action was taken to restrict the operations of the crypto exchanges that are illegally operating in Cambodia without licenses from the Sterg and Serc: Securities and Exchange Regulator of Cambodia.
As it is at the moment, while the websites are blocked, users have the option of accessing these exchanges through the mobile apps that they have downloaded on their mobile phones.
Cambodia Cuts Ties with Binance Despite Recent Relationship
This decision comes even though Binance already has established ties in Cambodia. In 2022, the company signed a memorandum of understanding with SERC to support the development of digital currency regulations. It also partnered with the Royal Group, one of the country’s largest conglomerates.
In mid-2023, Binance took another step by training Interior Ministry officials on detecting crypto-related crimes.
“We are keeping a close eye on the situation as it develops,” said Binance spokesperson Lily Lee, adding that the platform isn’t the only one impacted.
At the moment, only two companies are licensed to run digital asset businesses under SERC’s “FinTech Regulatory Sandbox” program. While these businesses can trade digital assets, they’re not allowed to exchange them for Cambodia’s official currency, the riel, or other fiat currencies like the US dollar.
Impact on the Crypto Market
Cambodia has emerged as one of the top 20 countries for retail crypto use per capita, according to Chainalysis. Despite strict regulations, centralized exchanges handle 70% of the country’s crypto transactions.
“Broad restrictions on cryptocurrency don’t work well when there’s real demand and practical applications,” said Chengyi Ong, Chainalysis’s head of Asia-Pacific policy.
However, Cambodia has also drawn attention for crypto-related crimes. The UN Office on Drugs and Crime reported that criminal groups are using crypto for money laundering and dark-web transactions.
Between 2021 and mid-2024, Chainalysis traced over $49 billion in crypto transactions linked to Huione Guarantee, a crypto-focused platform run by Cambodia’s Huione Group.
US Government Wallet Moves $1.9B in BTC to Coinbase Prime
Reports from Arkham Intelligence state that a US Government connected wallet has transferred $30 million of Bitcoin to Coinbase Exchange.
The funds can be traced back to the funds released from the dark web’s Silk Road, a trade platform for weapons and drugs that operated until 2013. After this transfer as well, the US has substantial crypto assets under their management including, $21 billion in Bitcoin, $217 million in Ethereum, and $122 million in Tether.
The last transaction was carried out in two parts. To Coinbase Prime’s deposit address there was a transfer of 0.001 bitcoin which is roughly $97. Subsequently there was transfer of 19,800 BTC which is worth close to $20 billion, and which instead of going directly to Coinbase was credited in another wallet first.
This shift comes after what happened in August. At that point 10,000 BTC were sent to Coinbase from the same wallet and that amount is said to be in the region of $600 million.
With respect to digital assets, Cambodia is showing a more stringent policy direction, determined to regulate cryptocurrency exchanges. This is despite such previous associations as the partnership of Binance with SERC and the Royal Group.
At the same time, global crypto activity is shifting. A recent $30 million Bitcoin transfer to Coinbase by a U.S.-linked wallet highlights how digital currencies continue to evolve in unpredictable ways. The combination of local crackdowns and international movements shows the complex landscape crypto operates in today.
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