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Cambodia’s National Bank Permits Commercial Banks to Engage in Cryptocurrency-Related Activities
The National Bank of Cambodia (NBC) has taken a significant step forward by allowing commercial banks and payment institutions to provide services related to Category 1 crypto assets, as per the new directive order issued. This development is crucial, as it paves the way for these financial institutions to engage in stablecoin and cryptocurrency-related activities within the country.
Under the revised guidelines, NBC has approved the provision of certain stablecoin and asset-backed cryptocurrencies by Cambodian-based banks and payment service providers. Meanwhile, unsecured and unbacked cryptocurrencies like Bitcoin will continue to be restricted. This new directive is a marked departure from Cambodia’s previous stance, which prohibited all cryptocurrency transactions and trading due to concerns about high risks, including money laundering, fraud, and illicit activities.
The NBC has introduced specific regulations for these institutions to follow. They must obtain prior approval before offering any crypto-related services. The approved services include exchanging crypto assets for fiat currencies or vice versa, transferring crypto assets between accounts, and providing custody services for crypto assets. Furthermore, banks are prohibited from using their customers’ crypto funds for personal gain.
This move by the NBC is viewed as a significant step towards embracing cryptocurrency in a regulated environment. The approval comes amid a surge in demand for cryptocurrencies following Donald Trump’s victory in the recent presidential election. The global market is now expecting crypto-friendly policies under his administration, and Cambodia has taken an important step in this direction.
It remains to be seen how this development will shape the country’s financial landscape in the coming months.
Source: www.cryptonewsz.com
