Crypto Overview in Cambodia

Regulatory data is for informational purposes only and may not reflect the most current legal developments. Always consult qualified professionals before making decisions.

Legal Classification and Regulatory Framework

Cryptocurrency Status

Cambodia’s approach to cryptocurrency has shifted from outright prohibition toward a structured, permission-based framework. For much of the past decade, the Kingdom maintained a restrictive position on digital assets. A joint statement issued by the National Bank of Cambodia (NBC), the Securities and Exchange Regulator of Cambodia (SERC), and the General Commissariat of National Police in 2018 effectively prohibited unlicensed cryptocurrency activities, leaving privately issued cryptocurrencies such as Bitcoin in legal limbo.

The landscape changed substantially at the end of 2024. The NBC enacted Prakas B7-024-735 Prokor on Transactions Related to Crypto Assets, dated 26 December 2024, which formally permits commercial banks and payment settlement institutions under NBC supervision to provide crypto-related services, subject to prior approval. Legal entities may also offer such services upon receiving the appropriate license from the NBC as a Cryptoasset Service Provider (CASP). This regulation marked the formal end of a blanket restriction and the beginning of a licensing regime.

Under the current framework, crypto assets are classified into two main groups. Group 1 covers tokenized traditional assets (Group 1a, such as tokenized bonds or equities) and stablecoins backed by reserve assets (Group 1b). Group 2 covers all other crypto assets, including unbacked cryptocurrencies such as Bitcoin and Ethereum. Commercial banks may engage with Group 1 assets but face an explicit prohibition on direct or indirect exposure to Group 2 crypto assets. Crypto asset exposure to Group 1a tokenized securities is capped at 5% of Common Equity Tier 1 Capital.

Cryptocurrency is not recognized as legal tender in Cambodia. The Cambodian Riel (KHR) and the US Dollar remain the only official currencies for domestic payments and settlements.

Tax Treatment

Cambodia does not have a comprehensive tax framework specifically designed for cryptocurrency transactions. The General Department of Taxation (GDT) has issued guidance classifying cryptocurrencies as intangible assets rather than currency or legal tender.

Gains from selling or exchanging cryptocurrencies may fall under the 20% capital gains tax that Cambodia introduced via Prakas No. 496 MEF.PRK, with that rate applying to securities and similar intangible assets from September 2025. For corporate entities engaged in crypto-related activity, the standard corporate income tax rate of 20% typically applies to trading profits. For individuals, enforcement against crypto gains has remained inconsistent in practice, and no crypto-specific guidance has been published to clarify reporting obligations.

Income from cryptocurrency mining or staking may be treated as ordinary business income subject to standard income tax provisions. Cryptocurrency cannot be used to pay tax obligations in Cambodia; all tax payments must be made in Cambodian Riel or other officially recognized fiat currencies through GDT-approved channels. Businesses and investors engaged in crypto activities should retain detailed transaction records and consult qualified tax professionals given the evolving enforcement environment.

Regulatory Oversight

Several government bodies share responsibility for cryptocurrency oversight in Cambodia. The National Bank of Cambodia (NBC) serves as the primary regulator for crypto asset activities involving commercial banks, payment settlement institutions, and licensed CASPs. The NBC issues licenses, sets prudential and AML/CFT requirements, and supervises all licensed entities.

The Securities and Exchange Regulator of Cambodia (SERC) maintains oversight of crypto assets that qualify as securities and administers the FinTech Regulatory Sandbox program. The Cambodia Financial Intelligence Unit (CFIU), operating under the NBC, enforces AML/CFT regulations across the financial sector, including crypto-related operations. The General Commissariat of National Police handles enforcement actions against unlicensed cryptocurrency platforms, while the Telecommunication Regulator of Cambodia (TRC) can block access to websites of unauthorized operators within the country.

Crypto License in Cambodia

Cambodia’s licensing framework for crypto assets is in active development. Prakas B7-024-735 (December 2024) established the foundational permission structure, but the NBC has indicated that detailed regulations on CASP licensing conditions and procedures, as well as rules governing commercial bank crypto asset exposures, are being issued as follow-on instruments. Entities planning to operate in Cambodia should monitor NBC announcements closely, as the licensing architecture is being defined in stages.

Cryptoasset Service Provider (CASP) License

Any legal entity wishing to offer crypto asset services to clients in Cambodia must obtain a CASP license from the NBC. CASPs are defined as entities that provide services including exchange of crypto assets against official currencies or other crypto assets, transfer of crypto assets on behalf of clients, and the custody or administration of crypto assets or instruments allowing control over them.

Applicants are expected to demonstrate adequate capital, governance structures, risk management policies, and technical capability to operate securely. All licensed CASPs must implement comprehensive compliance programs covering Know Your Customer (KYC) procedures, transaction monitoring, record retention, and suspicious activity reporting to the CFIU under the AML/CFT legal framework. Specific application procedures, capital thresholds, and operational conditions will be set out in the forthcoming NBC licensing regulation.

Penalties for operating without the required license or for non-compliance by licensed entities are governed by Article 52 of the Law on Banking and Financial Institutions, supplemented by penalties specified within Prakas B7-024-735 itself.

Commercial Bank Approval for Crypto Services

Commercial banks and payment settlement institutions under NBC supervision may provide crypto asset services for their own accounts or for customers, but only after receiving prior written approval from the NBC and only in relation to Group 1 crypto assets. Banks must establish board-approved risk management policies and procedures before commencing any crypto-related activity. They are prohibited from issuing their own crypto assets, from engaging in any direct or indirect transactions involving Group 2 (unbacked) crypto assets, and from holding derivatives linked to such assets.

Exposure to Group 1a tokenized traditional assets is subject to a prudential cap of 5% of Common Equity Tier 1 Capital. These restrictions reflect the NBC’s cautious approach: opening the door to regulated digital asset activity while ring-fencing the banking sector from the volatility associated with unbacked cryptocurrencies.

FinTech Regulatory Sandbox

The SERC operates a FinTech Regulatory Sandbox that allows selected entities to pilot digital asset products and services under close regulatory supervision and subject to defined restrictions. Currently, only a small number of companies have been authorized under the sandbox framework. Sandbox participants face operational limits, including restrictions on facilitating direct exchanges between digital assets and fiat currencies such as the Cambodian Riel and the US Dollar. The sandbox provides a structured route to market for early-stage fintech operators while the broader licensing framework is finalized, but it is not a substitute for a full CASP license once that regime is operational.

Business Environment

Banking Relationships

The relationship between traditional banking and cryptocurrency in Cambodia operates under the conditions established by Prakas B7-024-735. Commercial banks that have received NBC approval may offer Group 1 crypto asset services to clients, but the practical rollout of such services is still in early stages given that the regulation is recent. For individual traders and investors, direct integration between unlicensed platforms and local bank accounts remains restricted. This has historically directed many Cambodian crypto users toward international peer-to-peer trading platforms and foreign exchanges, though the government’s blocking of unauthorized exchange websites has complicated access for local users.

Innovation Support

Despite its cautious stance on private crypto assets, Cambodia has demonstrated serious commitment to blockchain-based financial infrastructure. The flagship initiative is Bakong, a blockchain-based retail payment system developed by the NBC in collaboration with Japanese fintech company SORAMITSU. Launched in October 2020, Bakong supports instant transactions in Cambodian Riel and US Dollars and operates on a tokenized deposit model. By 2024, the system processed approximately 608 million transactions with a total value of around $150.6 billion, equivalent to roughly 330% of Cambodia’s GDP. Merchant acceptance reached approximately 4.5 million points via the standardized KHQR QR code, and Bakong has established cross-border payment links with Thailand, Laos, and Vietnam. An ASEAN Monetary Research Office (AMRO) report published in late 2025 recognized Bakong as a model for financial inclusion in the region while noting gaps in rural uptake and wage-payment digitalization.

The Cambodia Data Exchange Platform (CamDX) uses distributed ledger technology for secure data exchange between government and private sector IT systems. The government’s National Roadmap for Digitalisation outlines continued investment in digital infrastructure and suggests that SERC may take a larger role in digital asset oversight as the framework matures.

Market Characteristics

Adoption Patterns

Cambodia exhibits notable digital asset adoption relative to regional peers, driven by a young, digitally oriented population and high smartphone penetration. Bakong’s growth has normalized digital wallet usage and blockchain-based transactions for millions of Cambodians, even though Bakong itself is a state-controlled system rather than a decentralized cryptocurrency. Private cryptocurrency usage has historically relied on international centralized exchanges and peer-to-peer platforms, with decentralized finance (DeFi) also seeing activity among more sophisticated users.

Industry Focus

Cambodia’s regulated crypto market is at an early stage. The SERC sandbox has enabled a limited number of operators to offer spot transactions and peer-to-peer trading to local users. Blockchain technology has found separate applications in loyalty programs, digital identity, and charitable initiatives. The broader fintech sector has grown rapidly alongside expanding mobile money, digital banking, and payment infrastructure, creating foundations that could support future crypto market development as the licensing regime becomes fully operational.

Regulatory Context and Enforcement

Cambodia’s regulatory evolution reflects both opportunity and risk. The country was removed from the FATF grey list in February 2023 after four years of increased monitoring, following improvements to its AML/CFT framework. However, Cambodia continues to face international scrutiny over cyber-scam compound activity concentrated in the Sihanoukville coastal region and other areas. UN OHCHR reports and UNODC assessments have documented large-scale operations in which trafficked workers are forced to carry out online fraud, often involving cryptocurrency as a payment and laundering mechanism. The US Department of the Treasury’s Financial Crimes Enforcement Network (FinCEN) has designated Huione Group as a financial institution of primary money laundering concern in connection with these activities. Cambodian authorities have carried out enforcement operations against unlicensed crypto operators, and the NBC’s new licensing framework is partly designed to distinguish legitimate crypto activity from illicit financial flows. FATF has indicated Cambodia’s next mutual evaluation will assess how it addresses these emerging threats.