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. .

What are your thoughts on this story? Tell us what you think in the comments section below.

image credits: Shutterstock, Pixabay, Wiki Commons

DisclaimerNote: This article is for informational purposes only. It is not a direct offer or solicitation of an offer to buy or sell, or a recommendation or endorsement of any product, service, or company. bitcoin.com does not provide investment, tax, legal or accounting advice. Neither the company nor the author is responsible, directly or indirectly, for any damage or loss caused or alleged to be caused by or in connection with the use of or reliance on any content, goods or services mentioned in this article.