Three Cambodian government bodies have jointly announced that the propagation, circulation, buying, selling, trading, and settlement of cryptocurrencies without obtaining a license are illegal activities. The agencies have also outlined four main risks associated with crypto trading or investing.
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License Needed
The National Bank of Cambodia (NBC), the Commission of Cambodia, and the General-Commissariat of National Police jointly made a statement regarding the legality of crypto activities in the country. It was signed on May 11 but published on Tuesday, June 19.
“Competent authorities have recently observed that cryptocurrencies such as Kh Coin, Suncoin, K Coin, Onecoin, Forex coin and other similar cryptocurrencies have been propagated, circulated, bought, sold, traded and settled actively in Cambodia,” the trio wrote, adding:
Competent authorities clarify that the propagation, circulation, buying, selling, trading and settlement of cryptocurrencies without obtaining license from competent authorities are illegal activities.
The authorities emphasized that “Any person or legal entity” engaged in any of the above activities without a proper license “shall be penalized in accordance with applicable laws.” However, the statement does not mention bitcoin or any crypto with a large market cap.
Regulators Outline Crypto-Related Risks
The statement continues to explain that the aforementioned crypto-related activities are not regulated by the authorities and “will cause potential risks to the public and society.”
The central bank released a resolution in December to all banks and microfinance institutions in the country to ban the trading of cryptocurrencies including bitcoin, the Phnom Penh Post described, adding that, as a result:
Many of these financial institutions prevent customers from using their accounts to buy or sell digital coins or tokens.
What do you think of this statement by the three government bodies? Let us know in the comments section below.
Images courtesy of Shutterstock and the Cambodian government.
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The post License Needed for Crypto Trading, Circulation, and Settlement in Cambodia appeared first on Bitcoin News.
Source: Bitcoin.com