Cambodia’s securities and central bank authorities have outlined plans to create a regulatory framework for virtual assets, including cryptocurrencies.

A joint notice issued on September 23 by the Securities and Exchange Regulator of Cambodia, or SERC, and the National Bank of Cambodia, or NBC, said the fast-growing market may create macroeconomic risks, as well as threats to consumer protection and anti-money laundering oversight.

The notice, titled Regulation of Virtual Assets and Virtual Asset Service Providers, said both institutions had observed rapid expansion in the use of digital assets for speculative investment and for payments for goods and services.

Risks and policy concerns

Virtual assets were described as digital representations of value that rely mainly on cryptography and a distributed ledger or comparable technology, can be traded or transferred electronically, and may be used for payment or investment purposes.

Regulators warned that their increasing adoption around the world, cross-border nature, and deeper connections with the mainstream financial system have amplified risks. They also cited concerns including tax evasion and cybercrime.

The move echoes earlier warnings from a 2018 statement by SERC, NBC and the General Commissariat of National Police, which said people or companies dealing in cryptocurrencies without approval from competent authorities could face penalties under applicable laws.

Proposed licensing and oversight

Regulators said a clear and coordinated response is needed. They added that a regulatory framework could improve financial market transparency, expand access to services, support economic empowerment and help increase public revenues.

The proposed harmonised approach rests on three principles: protection for investors and consumers, market integrity, and support for innovation.

Licensed commercial banks planning to offer customers services connected with virtual assets will need prior approval from NBC. Non-bank legal entities already licensed by NBC must obtain a licence from SERC before providing such services.

SERC and NBC also said they would cooperate on mechanisms to manage future developments in the market, with periodic reviews of that coordination.

Public warning

The authorities reminded the public that virtual assets are not legal tender in Cambodia and are not guaranteed by the government or the central bank.

They said digital assets are highly volatile and carry significant risk, urging the public to assess potential exposures carefully before making investment decisions.