Cambodia has blocked access to 16 major cryptocurrency exchange websites, including platforms such as Binance, Coinbase and OKX.

The move was imposed by the Telecommunications Regulator of Cambodia (TRC), which said it targets platforms operating without proper licenses from the Securities and Exchange Regulator of Cambodia (SERC).

Even though the crackdown mainly affects access to websites, the mobile applications of these platforms remain functional, allowing users to continue trading. The action is part of a broader regulatory initiative to combat illicit activities, including online gambling and crypto-related crimes, in the country.

Cambodia’s cautious approach to cryptocurrency regulation is highlighted by its limited regulatory framework. Currently, only two entities are allowed to operate under the SERC’s FinTech Regulatory Sandbox program, and these platforms are prohibited from offering exchanges of digital assets for fiat currencies like the Cambodian riel or the US dollar.

Despite this, Binance has a presence in the country having signed a memorandum of understanding with the SERC in 2022 to help develop regulation of the digital currency. Binance has also collaborated with Cambodian conglomerate Royal Group and trained Interior Ministry officials to detect crypto-related crimes.

The government’s actions come amid growing concerns over Cambodia’s role as a hub for crypto scams and cybercrime. The United Nations Office on Drugs and Crime has reported that Cambodia is a hotspot for illicit activities, including money laundering and fraudulent cryptocurrency schemes run by criminal syndicates, particularly in areas like Sihanoukville.

In contrast, Cambodia ranks among the top 20 countries in per capita retail cryptocurrency usage. Despite the crackdown, cryptocurrency transactions continue to thrive unofficially, particularly in peer-to-peer markets. The country’s digital assets market is expected to generate $8 million in revenue in 2024, although growth may slow by 2025.

Huione Garantie, a Cambodia-based marketplace believed to be linked to the country’s ruling family, has been implicated in harboring traders facilitating fraudulent transactions.

Blockchain analysis firm Elliptical alleges that Huione Garantie is involved in money laundering and other illicit activities. Since their inception in 2021, crypto wallets linked to Huione and its independent traders have received at least $11 billion, a figure that Elliptic considers a conservative estimate. Although not all of these transactions can be definitively linked to fraud or other illegal activities, Elliptic suggests that the majority of these payments are linked to such activities.

The platform provides escrow and escrow services for peer-to-peer transactions carried out via the Telegram messaging system. Listings on the platform reportedly include services for deepfake scams, money laundering and “pig slaughter”, where victims are financially drained by someone posing as a romantic interest.

Marketplace merchants operate their own chat app channels, allowing Huione to claim it lacks visibility into its customers’ specific trading activities or the nature of financial flows on the platform .