Digital Assets

Deal to Strengthen Cambodia’s Digital Assets Sector

A deal has been signed with a global blockchain infrastructure provider to develop Cambodia’s digital assets sector, meaning cryptocurrency is one step closer.
Signing ceremony between Binance and the Securities and Exchange Regulator of Cambodia. Kiripost/via SERC
Signing ceremony between Binance and the Securities and Exchange Regulator of Cambodia. Kiripost/via SERC

Cambodia’s digital asset landscape received a boost when an agreement was signed between Binance, the world’s leading blockchain infrastructure provider, and the Securities and Exchange Regulator of Cambodia (SERC) to develop proper regulation.

It is hoped that the Memorandum of Understanding, which was signed on Thursday, will be a stepping stone for future bilateral regulatory work.

Sou Socheat, Delegate of the Royal Government in Charge as Director-General of SERC, hopes to implement digital asset innovation in the right way across Cambodia through collaboration with Binance.

“Meanwhile, SERC has not issued any digital asset license yet as SERC has to develop regulations and related work for regulating this sector. Therefore, at present, no company in the Kingdom of Cambodia can conduct digital asset business in accordance with the laws and regulations,” Socheat said.

According to a press release, Binance and SERC will collaborate to develop the Kingdom’s securities sector, with Binance sharing technical knowledge and experience with SERC on digital asset operations, as well as supporting the development of the legal framework for regulation, bolstering Cambodia’s digital asset businesses, and conducting proper training on digital assets for the region.

At the signing ceremony, SERC and Binance made presentations on topics including the FinTech Regulatory Sandbox in the Securities Sector, Growth of Blockchain and Digital Asset in Southeast Asia, Use of Blockchain and Digital Asset Technology in Government Services, Regulating the Digital Asset Industry, Policy Strategies and Use Cases, and Blockchain and Digital Asset Education and Charity.

Gleb Kostarev, Binance Regional Head of Asia, said within the Southeast Asia region, where blockchain and digital asset adoption rate is high, Cambodia has the potential to be a market leader.

“Binance hopes to add value to the Cambodian securities industry by providing extensive and professional knowledge of the digital asset market,” Kostarev said.

According to Forbes, Binance is one of the top cryptocurrency exchanges in the world, facilitating 1.4 million transactions per second and Binance Coin is the exchange’s native token, which is currently the fifth largest crypto by market cap.