Latest Reminder from Cambodia: Crypto Trading May Involve These "Pitfalls"

Recently, the National Bank of Cambodia (the central bank) and the Securities and Exchange Regulator of Cambodia (SERC) jointly issued a statement, once again reminding the public to exercise caution when participating in virtual asset and cryptocurrency trading, fully assess the risks, and avoid financial losses.
The statement pointed out that, under Cambodia's current laws, virtual assets are not legal tender and are not guaranteed by the government or the central bank. Because virtual asset prices are highly volatile and the investment risks are significant, the public should fully understand the risks before engaging in related trading or investment, and make judgments based on their own circumstances.

The two departments stated that in recent years the virtual asset market has continued to develop; beyond being used for the payment of goods and services, virtual assets have gradually become a tool used by some investors for speculative trading, and the associated risks have further increased.
The statement specifically reminded that virtual asset trading may involve risks such as fraud, severe price fluctuations, money laundering and terrorist financing, sanctions and tax evasion, and cybercrime, and may also affect the protection of investor rights and macroeconomic stability.

Relevant Cambodian authorities issued a risk warning on cryptocurrency as early as 2018, clearly stating that without approval from the competent authorities, no individual or legal entity may independently carry out activities such as cryptocurrency fundraising, buying and selling, trading, or payment, and violators will be dealt with in accordance with the law.