For the first time, the National Bank of Cambodia (NBC) has allowed commercial banks and payment institutions to provide services involving Category 1 crypto assets, including backed or stable cryptocurrencies. However, unbacked cryptocurrencies, such as Bitcoin, remain prohibited.
The directive aims to regulate operations and businesses involving digital currencies, reflecting the country’s effort to keep pace with global financial innovations.
Under the directive, all commercial banks or payment institutions wishing to provide crypto-related services must seek prior approval from NBC. Institutions granted authorisation can engage in activities such as exchanging crypto assets for fiat currencies or vice versa, transferring crypto assets between accounts and providing custody services for crypto assets. However, they are explicitly prohibited from using their customers’ crypto assets for their own purposes.
Historically, Cambodia has banned cryptocurrency transactions and trading due to the associated high risks, including money laundering, fraud and illicit activities within the black market.