The Binance cryptocurrency exchange has signed a memorandum of understanding with the Securities and Exchange Regulator of Cambodia (SERC), according to a June 30 announcement.
Binance and SERC will work together to develop digital asset regulations in the country. SERC seeks to leverage Binance’s technical expertise and field experience to develop its own legal framework for the digital asset market.
Cryptocurrencies are not regulated in Cambodia, and any unlicensed activity involving these digital assets is strictly prohibited. The partnership could prove pivotal for the South Asian country, where any crypto-related activity has been considered illegal since 2018.
Gleb Kostarev, Asia Regional Head of Binance, told Cointelegraph:
“Economically, Cambodia has been among the top 10 fastest growing countries for the past 10 years, and annual economic growth has been consistent. In addition, the population of young people and experts in technology is high. With all these advantages, we believe that Cambodia can be a forerunner in the Web3 and digital asset industry. It would be an honor to be part of that process.”
Asia has become a crypto hotspot over the years, with several nations in the region taking a pro-crypto approach. thailand, SingaporeMalaysia and the Philippines have introduced progressive regulations to promote the use of crypto assets in their respective countries.
Binance has paid special attention to having good regulatory relations, especially since its 2021 debacle in which almost half a dozen countries issued compliance warnings against it. The leading crypto exchange has since mended relations and forged critical partnerships across Asia over the past year in countries including Thailand, Malaysia and Singapore.
The crypto exchange has also made a name for itself by offering governments technical expertise in crypto and helping them regulate the nascent sector. The exchange signed a $15 million investment agreement in Bermuda to teach and educate the community about cryptography.
Binance’s regulatory advances in emerging markets have drawn the attention of many, including Alex Gladstein, director of strategy at the Human Rights Foundation. Gladstein praised Binance’s recent expansion into emerging markets such as Asia, Africa, and the Middle East, saying:
“While Western crypto companies are buying Superbowl ads and sports stadium rights, Binance is ruthlessly taking control and custodian of emerging markets in Asia, Africa, the Middle East and Latin America. They are winning”.
In May, Binance signed a similar memorandum of understanding with the government of kazakhstan to help you with crypto adoption and regulations. Likewise, he signed an MoU with the Dubai World Trade Center Authority in December 2021 and after bagged a license to operate in the country too.