Cambodia has recently blocked access to 16 major cryptocurrency exchanges, including prominent platforms such as Coinbase and Binance, as part of its continuing crackdown on the crypto industry. The move follows a directive from the Telecommunications Regulator of Cambodia (TRC), which has ordered the blocking of 102 domains. The exchanges were shut down for not holding licenses from the Securities and Exchange Regulator of Cambodia (SERC), despite their mobile applications remaining active. This is a part of Cambodia's broader effort to regulate the sector, which has been marred by concerns over high levels of crypto-related fraud.

Despite these regulatory efforts, Cambodia continues to rank among the top 20 countries globally for retail crypto usage. It is estimated that the country uses centralized exchanges for 70% of its crypto transactions. The crackdown comes as only two companies have received licenses under the SERC’s "FinTech Regulatory Sandbox" program launched in 2022. Binance, which has signed a memorandum of understanding with SERC, is one of the key players working to develop a regulatory framework in Cambodia. However, disagreements between the National Bank of Cambodia (NBC) and SERC over the handling of digital assets complicate the regulatory landscape.

Along with the crackdown, Cambodia has come under increasing scrutiny due to its association with large-scale crypto-related fraud. Notable criminal activities have included the use of crypto platforms linked to organized crime, such as the Huione Pay platform, which allegedly processed over $49 billion in crypto transactions related to scams and dark-web activities. These fraud concerns highlight the need for a clearer and more robust legal framework for digital asset regulation in the country.

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