Financial Regulatory Shift in Cambodia: Banks Authorized to Offer Cryptocurrency Services
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Cambodia’s National Bank Authorizes Banks to Offer Cryptocurrency Services
The National Bank of Cambodia has recently made a groundbreaking decision by authorizing commercial banks and payment institutions to provide services for stable cryptocurrencies, excluding volatile tokens like Bitcoin. This significant shift in financial regulation aims to boost the country’s economy and reduce its reliance on the US dollar.
According to reports, the National Bank of Cambodia (NBC) has released a prakas that outlines the new policy, which comes into effect immediately. The authorization is limited to Category 1 crypto assets, which comprise stable cryptocurrencies only. This means that banks are now allowed to interact with these digital currencies for transactions and other financial activities.
It’s worth noting that NBC remains cautious when it comes to unbacked cryptocurrencies like Bitcoin and Ethereum, opting instead to focus on more stable alternatives. In fact, the regulator has explicitly excluded such tokens from its approved list of crypto assets.
The new policy also mandates prior approval for banks to engage in cryptocurrency transactions or custody of digital assets, which is designed to enhance consumer protection. This decision will undoubtedly have a significant impact on Cambodia’s financial landscape and may even lead to the adoption of digital currencies as an integral part of the official monetary system.
By allowing commercial banks to offer services for stable cryptocurrencies, the National Bank of Cambodia seeks to encourage innovation in the country’s financial sector while reducing its dependence on foreign currencies.
Source: cryptonewsland.com
