Two of Cambodia's principal financial authorities have indicated that they intend to put in place a formal rulebook for activities involving virtual assets, including cryptocurrencies.

Rising risks behind the move

In a joint notice issued on September 23, the Securities and Exchange Regulator of Cambodia (SERC) and the National Bank of Cambodia (NBC) pointed out that the fast-growing virtual asset market may bring macroeconomic dangers as well as threats to consumer protection and anti-money-laundering efforts. The document, titled "Regulation of Virtual Assets and Virtual Asset Service Providers," restated that both bodies have been tracking the sector's swift expansion and the increasing tendency for these assets to be used not only to buy goods and services but also for speculative trading.

The notice described virtual assets as digital representations of value that rely chiefly on cryptography and distributed-ledger or comparable technology, that can be exchanged or transferred electronically, and that may serve either as a method of payment or as an investment. Beyond these risks, the regulators flagged wider policy worries such as tax evasion and cybercrime.

Building on earlier warnings

The latest communication follows a 2018 joint statement from the SERC, the NBC and the General Commissariat of National Police, which cautioned that anyone—individual or company—handling cryptocurrencies without a licence from the relevant authorities could face penalties under existing law. The current notice stressed that the dangers tied to virtual assets have grown more acute as global uptake has widened, given their cross-border character and their deepening connections to the conventional financial system. These trends, it said, call for a regulatory response that is comprehensive, consistent and coordinated.

The authorities also noted potential upside, suggesting that oversight could open doors to greater transparency in financial markets, wider access to financial services, broader economic empowerment and additional revenue for the state.

A framework built on three principles

The SERC and NBC proposed a harmonised approach grounded in three core aims:

• Protecting investors and consumers
• Safeguarding market integrity
• Encouraging innovation

Who needs which licence

Under the plan, licensed commercial banks that wish to offer customers services tied to virtual assets would first have to secure approval from the NBC. Legal entities licensed by the NBC but operating outside the commercial banking sector would likewise need to obtain a licence from the SERC beforehand. The two institutions said they would work together on coordination mechanisms as the market continues to develop, with regular reviews of that cooperation.

Not legal tender, regulators remind public

Both bodies reiterated that, under Cambodian law, virtual assets are not recognised as legal tender and carry no backing from the government or the central bank. They cautioned that these assets tend to swing sharply in value and entail substantial risk, advising the public to weigh such dangers carefully before entering into any transactions and to base investment choices on informed judgement.