Cryptocurrency adoption has been on the rise in recent years, and 2024 has especially been a great year in terms of increasing global adoption of digital assets. Many surprising developments, such as El Salvador recognizing Bitcoin as legal tender, have occurred. But while many countries have welcomed crypto with the widest of open arms, some of them have kicked crypto out of their systems in a sudden turn of events. 

In its latest crypto display, Cambodia has blocked 16 cryptocurrency exchange websites from operating in its country. The unexpected move is reportedly part of Cambodia’s move to regulate what can sometimes seem like the “wild west world” of crypto.

While the move is shocking, the crypto community was very surprised to find the names of major crypto players on the block list. Among these big names are OKX, Binance, and Coinbase, causing many to wonder why. 

However, it is important to mention that while the country blocked the websites of these crypto companies, their mobile apps still work perfectly. This move has left many wondering how effective the block can be. 

Many wonder why the Southeast Asian country has embarked on this crackdown. Nikkei Assia reported that the blocks may have been implemented because the exchanges failed to secure the necessary licenses from Cambodia’s Securities and Exchange Regulator.

The ban comes in when Cambodia's digital market is well-poised for huge gains. According to Statista, the country’s digital asset users are not just growing rapidly. The industry is expected to rake in around $8 million in 2024.

Even though many consider this move a powerful one from the country’s regulators, the Cambodian government is reportedly under pressure to reform its image from being a criminal haven. The UN Office on Drugs and Crime (UNODC) has reported that crypto is well-used for illicit activities such as money laundering as well as dark web transactions. 

Chainalysis data further revealed that over $49 billion worth of crypto transactions have been linked to Huione Guarantee, an online marketplace widely used by cybercriminals in Southeast Asia. 

Reports like these validate the Cambodian government’s initiative to block these crypto companies; however, it will not be the country's first move against crypto in the past month. On November 20, the office of the Telecommunication Regulator of Cambodia (TRC) issued a directive to block 102 websites.

Most of these websites were associated with online gambling platforms. These crypto giants have also found themselves on the list. Binance’s case is even more shocking, considering its involvement in helping Cambodian authorities develop crypto regulations and providing training to Interior Ministry officials on tackling crypto-related crime. 

As it stands, only two companies are fully authorized to operate any business involving digital assets in Cambodia under the country’s “FinTech Regulatory Sandbox” program.

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