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Cambodia’s Central Bank Approves Compliant Stablecoin Services, Bans Unbacked Assets Like BTC
In a recent development, the National Bank of Cambodia has approved compliant stablecoin services while prohibiting unbacked assets such as Bitcoin. This decision was formalized in a prakas issued on December 26 and announced by NBC on December 27.
According to reports, the Central Bank of Cambodia now allows commercial banks and payment institutions to provide services related to Category 1 cryptocurrencies, which are essentially backed or stable currencies. On the other hand, unbacked cryptocurrencies like Bitcoin remain prohibited.
The regulatory move aims to regulate operations and businesses involving digital currencies, demonstrating the country’s efforts to stay in sync with global financial innovations.
This decision is expected to have significant implications for the cryptocurrency market in Cambodia, as it sets a clear direction for the regulation of these assets within the country.
Source: coinpedia.org
