Crypto Activities Without License Are Illegal – Cambodian Regulators

News, Regulation | June 20, 2018 By:

Cambodian authorities have issued a joint statement warning the public that buying, selling, trading and settlement of cryptocurrencies without obtaining a license are “illegal activities.”

The joint statement was posted on the Facebook page of the National Bank of Cambodia (NBC) and endorsed by the Securities and Exchange Commission of Cambodia (SECC) and the General Commissariat of National Police. The authorities stated that local crypto companies that are currently operating without government approval pose serious risks to the public.

“The propagation, circulation, buying, selling, trading and settlement of cryptocurrencies such as KH Coin, Suncoin, K coin, Onecoin, Forex coin and other similar cryptocurrencies which are not regulated by competent authorities will cause potential risks to the public and society as a whole,” the statement said.

The authorities warned that involvement with cryptocurrencies can bring investor risk arising from price volatility, cybercrime, and a lack of investor protection mechanisms that results from the pseudonymous nature of crypto transactions.

“There is no customer protection mechanism and the user of cryptocurrencies is an anonymous person who has no identity or historical records, which may cause risks of money laundering and financing of terrorism,” the statement said.

The statement further said that any entity conducting unlicensed crypto-related activities would face legal action.

KH Coin co-founder In Mean expressed support for the statement, but said he was disappointed when he saw his cryptocurrency’s name mentioned.

“KH Coin has never deceived anyone,” Mean said. “It is not a kind of deceptive investment which causes people to lose money. It has been three years since we started working on this project. We educate and instruct people not to deceive anyone.”

In December 2017, the NBC banned financial institutions from engaging in cryptocurrency transactions. This made it difficult for people to trade in cryptocurrencies even though the government had not outlawed people from owning them.