Cambodia’s Crypto Industry Marches Forward Despite Legal Grey Area
Cambodia’s cryptocurrency sector appears to be marching forward, despite the absence of clear regulatory guidelines pertaining to virtual currencies.
Also Read: PBOC to Strengthen Cryptocurrency Regulations in 2018
Regulatory Ambiguity Fails to Deter Cambodia’s Cryptocurrency Sector
A report published by The Phnom Penh Post suggests that Cambodia’s virtual currency industry is pressing forward in spite of the regulatory ambiguity surrounding cryptocurrencies in the country.
The founder of the Khmer Crypto Foundation, In Mean, told local media that individuals operating in Cambodia’s cryptocurrency sector do so with great care due to the legal uncertainty. “It’s not clear yet whose job it is to regulate cryptocurrencies,” Mr. Mean said. “It could fall to the [National Bank of Cambodia (NBC)] or the [Securities and Exchange Commission of Cambodia (SECC)], but it’s not clear yet which one it will be.”
Although Cambodia has not explicitly outlawed the possession cryptocurrencies, Cambodia’s government announced the prohibition of “all banks and microfinance institutions from trading, buying, selling and advertising cryptocurrencies,” in December 2017.
Cambodians Citizens Launch Altcoins in Spite of Legal Grey Area
Mr. Mean launched his own cryptocurrency in November 2017, with local media stating that the “regulatory grey area […] prevents him from monetizing it.” Mr. Mean states that he “give[s] out the coin” and “tell[s] people that it has no value,” claiming that the project, Khcoin, functions as an educational tool as opposed to a speculative asset. Mr. Mean created a wallet for Khcoin, and claims that roughly 5,000 Cambodian citizens currently hold Khcoin. Mr. Mean states that he has also developed an exchange platform for Cambodian cryptocurrency trading, however, waiting for clear regulatory guidelines before he intends to launch such.
The exchange has so far proved a trying venture for Mr. Mean, who states “I used my own money and lost thousands of dollars to hackers [during testing], but I want to do this because I think it is important for Cambodia to show the world that it can have its own cryptocurrency.”
Entapay to Conduct ICO in Cambodia
At the start of March, Cambodia saw the launch of another local altcoin, called Entapay. The project was initially the subject of confusion – with a press release for the project announcing Entapay to be backed by the Cambodian government. Richard Lee, the PR director of Entapay, appears to have subsequently distanced the company from the bold claims, stating “We never said that we had the official backing of the government. We just said that we had their support” – despite adding “We don’t have a financial license for Entapay yet, but we will soon.”
The company is currently holding an initial coin offering for its Entapay token. The ICO is currently conducting pre-sales, accepting only ETH from investors. Investors will be distributed ‘Enta Diamond certificates’ which investors can then use to purchase Entapay tokens.
What are your thoughts on the ambiguity surrounding Cambodia’s cryptocurrency industry? Join the discussion in the comments section below!
Images courtesy of Shutterstock, Entapay.io
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