Just before the start of 2025, the National Bank of Cambodia (NBC) took a decisive step in regulating cryptocurrency in the Kingdom via a prakas on digital assets. The move establishes a clearer legal framework for crypto in Cambodia, distinguishing between permitted and prohibited crypto assets, but while some have seen it as a tightening of regulations, others have viewed it as a structured approach that could potentially open the door for regulated digital finance in the future.
So, what’s in the prakas? The “Prakas on Transactions Related to Cryptoassets” classifies cryptoassets into two categories. Group 1 consists of crypto assets backed by real-world assets, such as certain stablecoins, which financial institutions can engage with under strict regulatory oversight, and Group 2 is unbacked cryptocurrencies, including Bitcoin and Ethereum, which remain strictly prohibited from being used, traded, or accepted within the country’s financial system.
Banks, payment service providers, and businesses are prohibited from facilitating transactions using unbacked cryptocurrencies, and while individuals may still hold crypto, using it in Cambodia poses serious risks. The NBC has once again stated that the only recognized digital financial system in the country is the Bakong payment system, which is backed by the central bank.
Crypto holders and businesses
For people who hold cryptoassets, the prakas makes it even harder to transact legally. While personal ownership isn’t explicitly banned, converting crypto into fiat currency using local banks is banned.
Businesses face even greater restrictions, with those hoping to integrate crypto payments into their services unable to do so legally. Crypto exchanges operating within Cambodia must now comply with stringent regulatory requirements, effectively barring unlicensed platforms from serving Cambodian users. On the other hand, companies dealing with stablecoins backed by traditional assets could find opportunities, provided they secure approval from the NBC.
Compared to Cambodia’s previous outright prohibitions, the prakas introduces some structure by acknowledging certain regulated crypto assets. However, for most people and businesses, it strengthens restrictions rather than loosens them. The formal classification of crypto into two groups eliminates previous legal gray areas and reinforces the country’s stance against unregulated digital currencies.
At the same time, the move suggests that Cambodia is not entirely dismissing digital assets. By permitting Group 1 crypto assets under regulatory oversight, the NBC has signaled a potential openness to a controlled digital finance ecosystem, possibly paving the way for future developments.
Any future for crypto in Cambodia?
The immediate effect of the prakas is a tighter grip on crypto, reducing avenues for people and businesses to engage with unbacked cryptocurrencies. However, as global trends shift increasingly toward digital finance, Cambodia’s approach might eventually evolve into a more regulated but functional crypto environment. For now, though, crypto in Cambodia remains heavily restricted, with limited scope outside the NBC’s controlled financial ecosystem.
