Cambodia Warns Illegal Cryptocurrency Trading Activities

Cambodia  authorities announced that cryptocurrency companies who are operating their business in their country must now secure the necessary permit. Otherwise, they have to face legal sanctions as reported in Coindesk.
The National Bank of Cambodia (NBC), the Commission of Cambodia, and the General-Commissariat of National Police made a statement after observing the growth of cryptocurrency trading activities in the country. The statement was published last June 19 but it was signed last May 11.
According to the statement, “Competent authorities have recently observed that cryptocurrencies such as KH Coin, Suncoin, K Coin, One-coin, Forex coin and other similar tokens have been propagated, circulated, bought, sold, traded and settled actively in Cambodia. Competent authorities clarify that the propagation, circulation, buying, selling, trading, and settlement of cryptocurrencies without obtaining a license from competent authorities are illegal activities.”
It  furthered that the said activities are not regulated by the authorities and “will cause potential risks to the public and society.”
These government agencies explained the specific risks of involvement with cryptocurrencies. These are price volatility, cyber crime, and a lack of consumer protection. The unknown identities of cryptocurrency users who do not have any relevant identity records may cause risk of money laundering and financing terrorism.

According to CCN,  many investors have become victims of various cryptocurrency scams lately. Different countries such as the United Kingdom,Canada, Italy, Ireland (including Cambodia) warned the against  the alleged OneCoin pyramid scheme.
With these risks and concerns about cryptocurrency activities, it is high time for the government to impose the needed regulations.
There are no clear requirements yet regarding the application for cryptocurrency business operation license.
Given that cryptocurrency trading and initial coin offerings (ICO) are relative new, the trading activities are  not black and white. The government is yet to set a clear legal framework to safeguard its people.
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