Cambodia, one of the crypto-friendly Asian nations in recent times is looking to increase its regulatory oversight in its Crypto Space to eliminate bad actors. Now, the country has officially made it illegal for companies to offer virtual currency-based services in the nation without getting the necessary permit from regulators.
Get Registered or Face the Consequences
According to a statement jointly released by the National Bank of Cambodia (NBC), the Securities and Exchange Commission of Cambodia and the General-Commissariat of National Police, it is now an unlawful act for firms present in the country to carry out cryptocurrency operations without a license.
The statement read:
“Competent authorities have recently observed that cryptocurrencies such as KH Coin, Suncoin, K Coin, One-coin, Forex coin and other similar tokens have been propagated, circulated, bought, sold, traded and settled actively in Cambodia. Competent authorities clarify that the propagation, circulation, buying, selling, trading, and settlement of cryptocurrencies without obtaining a license from competent authorities are illegal activities.”
In recent times, quite many unsuspecting investors and gullible crypto greenhorns have fallen victims to scam schemes in the digital currency space.
The OneCoin project has been touted as a Ponzi scheme by authorities in various nations. Back in 2016, the UK’s Financial Conduct Authority warned crypto investors against pumping their funds into the OneCoin pyramid scheme.
“We believe consumers should be wary of dealing with OneCoin, which claims to offer the chance to make money through the trading and ‘mining’ of virtual currencies. If you believe that you have been a victim of fraud in this regard, or have had dealings with OneCoin, then please contact Action Fraud or telephone them on 0300 123 2040,” the FCA declared at the time.
In general terms, the Cambodian crypto industry is quite vibrant, with a vast array of citizens actively trading bitcoin and other altcoins such as the KHCoin, a digital currency developed by a Cambodian software developer known as In Mean .
However, just like most world governments, the Cambodian regulators have not ceased warning residents to desist from investing in digital currencies citing its super volatile nature and the fact that most cryptos are not backed by collateral, their use for money laundering activities by bad actors and other risks holders face.
Notably, on June 1, 2018, BTCManager reported that Chinese authorities had hammered down the OneCoin Pyramid scheme, arresting about 100 people and recovering $267 million in the process.
Amidst that backdrop, the Cambodian authorities have made it clear that all persons dealing in cryptos in the region must obtain a “government-issued license or get penalized in accordance with applicable laws.”
Similarly, on June 11, 2018, BTCManager reported that the chair of the United States Securities and Exchange Commission (SEC), had made it clear that bitcoin is the only cryptocurrency that’s not a security. Therefore all crypto-related businesses in the US must get under its regulatory purview.
“A transparent medium of exchange, the one that’s most often cited, is bitcoin. As a replacement for currency, that has been determined by most people not to be a security. Then there are tokens, which are used to finance projects,” Clayton said in April 2017.
Amenably regulating the Cryptospace is a good thing in itself, as it would go a long way in curbing the incidence of fraud in the nascent digital assets ecosystem and Cambodia has taken a bold step in the right direction.