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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 given its approval to compliant stablecoin services, while also prohibiting unbacked digital currencies like Bitcoin. This decision was formalized through a prakas issued on December 26 and officially announced by NBC on December 27.
According to the new directive, commercial banks and payment institutions in Cambodia are now allowed to provide services related to Category 1 cryptocurrencies, which essentially refers to backed or stable cryptocurrencies. On the other hand, unbacked digital currencies such as Bitcoin will no longer be permitted.
The aim of this regulatory effort is to govern operations and businesses involved with digital currencies, demonstrating the country’s commitment to embracing global financial innovations.
This move serves as a significant step forward in Cambodia’s efforts to modernize its financial landscape while ensuring stability and security for its citizens.
Source: coinpedia.org
