Three governmental agencies yesterday issued a joint declaration warning the public against the sale and purchase of cryptocurrencies, which they describe as ‘illegal’ as well as ‘dangerous’, as users are left exposed to volatile prices and cybersecurity threats.
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The statement was drafted in May and released yesterday by the National Bank of Cambodia, the Securities and Exchange Commission, and the General Commissariat of National Police.
In the statement, the agencies state their concerns over a perceived rise in the use of digital currencies, citing KH Coin, Suncoin, K Coin, One-Coin and Forex Coin as examples of crytocurrencies often traded in the Kingdom.
“We hereby declare that promoting and transacting unlicensed electronic coins is illegal,” the statement said.
The statement continues by saying that the use of digital currencies, which are not regulated by the government, poses severe risks for users and society. Risks include a lack of collateral when issuing the coins, prices that fluctuate wildly and are not based on economic fundamentals, as well as high exposure to hacking activity and other cybersecurity threats.