Cambodia embraces stablecoins with new law, but Bitcoin and Ether are still banned
The post Cambodia embraces stablecoins with new law, but Bitcoin and Ether are still banned appeared on BitcoinEthereumNews.com.
Cambodia has finally cracked the door open to crypto—kind of. For the first time, the National Bank of Cambodia (NBC) is letting commercial banks and payment companies handle stablecoins and other cryptos backed by real-world assets. But if you’re a Bitcoin or Ether enthusiast, don’t get excited. Those are still banned, and the government isn’t budging on that. This step was announced on December 27 after a directive was issued the day before. This new law gives stablecoins a green light but comes with a truckload of conditions. Financial institutions have to play by the NBC’s rules. Cambodia’s messy history with crypto Cambodia has always been allergic to crypto. Before now, trading them was straight-up illegal. Officials blamed it on risks like money laundering, scams, and shady black-market dealings. These coins have been public enemy number one for years. But it’s not like they didn’t notice the global crypto boom. As crypto gained traction worldwide, the NBC decided it needed to catch up without losing control. Enter the prakas of December —a measured, tightly regulated approach to crypto adoption. The decentralized nature of cryptos makes them a nightmare for regulation, taxation, and tracking. Still, he admitted banks could rake in revenue through user fees if they jump into crypto. Back in 2020, the NBC launched Bakong, its own central bank digital currency (CBDC). Bakong was meant to reduce the country’s dependence on the US dollar and give people a local, digital payment system. By late 2024, Bakong allegedly had 200,000 active users and had processed 1.4 million transactions worth $500 million. But this year alone, the government blocked access to 16 major crypto exchanges, including Binance and Coinbase, because they didn’t have proper licenses. And yet, Cambodia ranks in the top 20 countries globally for retail crypto use per capita.…
Filed under: News - @ December 27, 2024 3:26 pm