Cambodian authorities have reportedly said that no crypto companies have received a business license yet, and conducting crypto-related activities in the country remains illegal.
Fintech industry growing fast
The Cambodian government has not given the green light for the issuance or use of any cryptocurrency in the country, according to a report. The report, citing a document recently released by the Ministry of Finance and Economy, says that it is still illegal to create, distribute, or trade cryptocurrencies in Cambodia.
According to a Chinese news service reportAlthough the ministry acknowledges that the fintech industry is growing rapidly, it nonetheless reiterated that the long-standing ban on cryptocurrency trading remains in place. As previously reported Per Bitcoin.com News, Cambodian authorities announced in 2018 that the circulation or trading of cryptocurrencies without a license was illegal.
At the time, authorities warned that crypto activities had the potential to cause risks to the public and society. The volatility of crypto assets, as well as the lack of backing from an underlying asset, are some of the risks mentioned in the May 11, 2018 statement. Lack of consumer protection, cybercrime, and loss of funds due to piracy are the other risks that were mentioned in the statement.
Cambodia Fintech Policy Writing
In a new statement issued jointly with the National Bank of Cambodia, the Securities Commission and the National Police Agency, the Ministry of Finance reiterated that no cryptocurrency company has received a business license.
Meanwhile, the China News Service report revealed that Cambodia is currently drafting its financial technology development policy which, according to the Ministry of Finance, ensures that the country fully benefits from the development of this emerging technology and minimizes the associated risks. .
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