Legal Crypto In Cambodia

Overview of Cryptocurrency Legality in Cambodia

Legal Status

Cryptocurrencies are not considered legal tender in Cambodia and hence transactions using them are not enforceable in law. The issuance, sale, and circulation of decentralized digital currencies, such as Bitcoin and Ethereum, are prohibited. In January 2025, the central bank issued rules allowing commercial banks to manage digital assets that are considered to be of a low risk, upon approval and with strict governance and risk controls. A regulated stablecoin service gets the green light as a baby step for regulated digital assets. An overseas cryptocurrency exchange ban, set for 2025, is intended to enable greater state control, incentivize the national currency and fight cybercrime, cutting off access to platforms such as Binance and Coinbase.

Regulatory Framework

In the field of cryptocurrency, it is the central bank by which the cryptocurrency market is dominated, where the rules and regulations have created a stringent environment. Use of electronic money is under regulation, however use of virtual currencies is not regulated or prohibited, resulting in not being considered illegal. Banks are subject to severe monitoring and reporting requirements, and their crypto activity is rigorously analyzed for signs of illicit finance. Title to Suspend Japan bans banks from dealing with centralized digital currencies Feb 23, 2021 7 months ago While Japan bans banks from adopting decentralized cryptocurrencies, it will effectively ban Japanese banks from servicing firms from engaging with digital assets and stablecoin services by January 2025 with extremely strict regulation, and could add on additional today by requiring banks to file suspicious activity reports on the taxation front. The 2018 decree bans the issuance, distribution or trading of cryptocurrencies, and the 2025 ban of foreign exchanges made that point clear.

Major exchanges and types of exchange

There are no legal domestic crypto exchanges in Cambodia as crypto trading is banned. Before the 2025 ban, overseas platforms such as Binance, Coinbase and Kraken would be accessed in informal ways including VPNs, but legal accessibility is now restricted, basically forcing peer-to-peer (P2P) trading into the grey zone. Modes of transactions involve conversion of fiat to digital assets & vice versa, but limited to approved stablecoin operations or safe digital assets via the banks of the nation or US dollars; P2P trade that includes unofficial, unlawful trade on social media, messaging apps & by person with higher corresponding risk; as well as stablecoin operations, where licensed financial institutions can deal with software items (with potential to include Ripple’s stablecoin) and wait for more clarity in regulations.

DeFi and NFT Markets

DeFi is effectively disallowed in Cambodia, with decentralized cryptocurrencies such as Ethereum – the most commonly used platform for DeFi projects – banned. Informal DeFi usage on offshore platform is Illegal; highly risky due to a low internet penetration, low blockchain literacy and weak regulatory protection. Illiquid Market: NFTs do not have a liquid market as trading is prohibited by underling blockchains (ie, Ethereum). Other platforms around the world, such as OpenSea, are not available in the country's law, and although regulations could change to allow for the existence of NFTs, none have been reported as of May 2025.

Recent News And Sentiment

Its acceptance of licensed stablecoin services and low risk digital currencies show a pragmatic mindset when it comes to regulated digital finance that finds harmony with the need to further state currency and prevent illegal uses. Public opinion, based on sentiment in social media, is divided with some users hoping for stablecoin integration and others bashing the ban of Bitcoin and Ethereum as hindering innovation. The prohibition on foreign exchanges could push crypto activities into the shadows, elevating the threat of scams and criminal sanctions.

Key Regulatory Details

Regulation Type	Description	Implications
Electronic Money Regulation	Governs electronic money, excluding virtual currencies.	Ambiguous legal status for cryptocurrencies; no recognition as valid transactions.
Financial Monitoring Requirements	Mandates monitoring and reporting of suspicious transactions.	Increased scrutiny of crypto activities; risk of penalties for non-compliance.
2025 Directives	Permits banks to handle low-risk digital assets and stablecoins with authorization.	Limited legal pathway for stablecoins; decentralized cryptocurrencies remain banned.
2018 & 2025 Bans	Prohibits crypto creation, trading, and use of overseas exchanges.	Restricts market access; pushes trading to informal, illegal channels.

Relevant Information to Share with Stakeholders

• Consultation with Cambodia-based financial advisor to advise on regulatory considerations for activities relating to digital assets.

• Cooperate with authorized Banks, develop business and connect into stablecoin services, realize a stable and compliant business channel.

• Focus investments on cybersecurity to protect digital assets, consistent with Cambodia’s focus on fighting cybercrime.

• Be an active member of local Fintech networks to learn regulatory changes and market opportunities.

• Consider using registered digital payment options, like mobile banking systems, to fulfill financial requirements within Cambodia as they considered legal in the country.

• Look to Thailand for digital asset trends to predict what might happen with digital assets in Cambodia.

Conclusion

Cryptocurrency in Cambodia: Severely restricted Cryptocurrency in Cambodia is becoming increasingly restricted, with decentralized coins being illegal and only low-risk digital assets and stablecoins allowed under heavy central bank supervision. The absence of domestic exchanges and the ban from 2025 on the overseas platforms leaves traders to rely on informal or regulated channels. DeFi and NFT markets are still unripe because of two obstacles: regulations and technologies. Market players should be prioritising compliance with central bank regulation, and capitalising on the competitive advantage that comes with this uniquely-informed steering of a complex terrain within the law.