The National Bank of Cambodia (NBC) has introduced new regulations governing cryptoasset transactions and activities within the country.
The prakas aims to manage the growing use of cryptoassets while safeguarding the financial system from associated risks.
The regulations classify cryptoassets into two groups.
Group 1 includes tokenised traditional assets, such as bonds and equities, and stablecoins backed by traditional assets with strict stabilisation mechanisms and regulatory oversight.
Stablecoins must be redeemable for predefined values, minimise market fluctuations, and comply with central bank supervision.
Group 2 includes unbacked cryptoassets or those lacking sufficient stabilisation or backing.
Commercial banks may engage with Group 1 cryptoassets if authorised by the NBC but must adhere to strict governance and risk management requirements.
Exposure to Group 1a assets, such as tokenised traditional assets, is capped at 5% of Common Equity Tier 1 (CET1) Capital, while exposure to Group 1b assets, including stablecoins, is limited to 3%.
Issuing cryptoassets or engaging with Group 2 cryptoassets is strictly prohibited.
Cryptoasset Service Providers (CASPs) must obtain licences from the NBC to offer services such as exchange, transfer, custody, or safekeeping of cryptoassets.
CASPs are prohibited from using customer assets for their own purposes, promoting specific cryptoassets, or offering services that encourage cryptoassets as payment for goods and services.
They may advertise their services but not individual cryptoassets.
Entities failing to comply with these regulations may face fines of up to KHR 500,000,000 per violation, daily fines of KHR 1,000,000 for reporting failures, or KHR 3,000,000 for broader non-compliance.
Banks exceeding exposure limits or engaging in unauthorised activities may also incur fines.
The NBC underscores that these measures aim to ensure financial stability, protect consumers, and mitigate risks such as money laundering and cyber threats.
The prakas is effective immediately.
Featured image credit: Edited from Freepik
