In a move to regulate the expanding crypto landscape, the National Bank of Cambodia (NBC) has released its initial set of rules governing digital assets for banks and payment service providers.
The new regulations distinguish between tokenised assets, qualifying stablecoins, and cryptocurrencies, setting the stage for how financial institutions can engage with these digital assets.
Under the new guidelines, Cambodian banks are allowed exposure to tokenised assets and stablecoins but are prohibited from directly holding cryptocurrencies.
The central bank's directive specifies that institutions can engage with tokenised securities and stablecoins categorised as 'Group 1' assets, akin to the Basel Committee’s classification of safer digital assets.
Group 1 assets include tokenised traditional assets and stablecoins with robust stabilisation mechanisms.
The NBC has set exposure caps at 5% of Common Equity Tier 1 (CET1) Capital for tokenised assets and 3% for stablecoins.
Interestingly, while banks cannot have direct exposure to cryptocurrencies for their own purposes, the rules for client-related services appear more permissive.
Banks acting on behalf of clients as Crypto Asset Service Providers (CASPs) must obtain approval from the central bank.
The regulation does not explicitly restrict banks from offering cryptocurrency-related services such as custody, trading, and on/off ramping for clients, suggesting a potential avenue for client engagement with crypto assets.
The NBC has laid out specific restrictions for CASPs.
These providers cannot use client assets for their purposes, offer lending services involving crypto assets, or advertise specific cryptocurrencies.
However, they can promote their services in general, provided they do not directly encourage the use of cryptocurrencies for payments.
The rules also touch on the use of stablecoins in payments, stating that CASPs should not provide services that enable crypto assets to be used for buying goods and services.
It remains unclear whether this restriction targets all payment uses or primarily domestic ones.
This ambiguity could impact the integration plans of stablecoins with the blockchain-based payment system Bakong, which has gained significant traction since its launch in 2020.
The NBC has imposed stringent penalties for non-compliance with the new regulations.
Entities breaching these rules could face fines up to KHR 500,000,000 per violation, alongside daily fines for reporting failures and broader non-compliance issues.
Banks that exceed exposure limits or engage in unauthorised activities are also subject to these penalties.
These measures, the central bank asserts, are designed to safeguard the financial system, protect consumers, and mitigate risks such as money laundering and cyber threats, marking a significant regulatory step in Cambodia’s approach to the burgeoning digital asset space.
Ahead of the 26 September HMSTR token launch, Hamster Kombat announced plans for NFTs, new games, and less reliance on Telegram. By 2025, it aims to launch an NFT marketplace, host a clan championship, and start the second phase of its airdrop.
CatherinePayments giant PayPal now allows US merchants, except New York, to buy, hold, and sell crypto via their business accounts. This move expands PayPal's crypto accessibility, offering enhanced financial tools to millions of businesses.
KikyoSouth Korea is launching the Digital Asset User Protection Foundation to help users recover funds trapped in failed cryptocurrency exchanges, which have seen ten out of 22 platforms shut down. The foundation, expected to start operations in October, will coordinate with defunct exchanges to securely manage and return users' assets.
AnaisOpenAI is transitioning to a for-profit benefit corporation. Reports suggest that Sam Altman could receive a 7% equity stake, potentially valued at $10.5 billion. This prompts an important question: why are so many key insiders departing?
CatherineA Singapore court granted WazirX a four-month conditional moratorium after its July hack, which led to a $234 million loss. The exchange initially requested six months but received a shorter relief period under specific conditions to address its financial situation.
KikyoMeta is revamping its metaverse avatars with a major update launching on October 1st, allowing users to customize features like eye size and body types. Future updates will include AI-generated avatars and new options for fantasy characters, enhancing user experience in the metaverse.
JoyA scam targeting cryptocurrency investors in Hong Kong has led to losses of HK$14.8 million, with victims tricked into making transactions at fake exchange shops. One businessman lost HK$4 million after realizing he was locked inside a shop while scammers escaped with his money.
WeatherlyChina announced a "policy bazooka" on Tuesday, introducing measures to boost its economy, including cuts to mortgage rates, the reserve requirement ratio, and new stock market support tools. The key question: will this stimulus boost crypto or push interest towards cheaper fiat currencies?
CatherineLINE NEXT has launched “Super Mates,” an app that allows fans to interact with AI-driven avatars of their favorite artists in English, Korean, or Japanese. To celebrate, they’ve partnered with K-pop group aespa, offering exclusive rewards and merchandise while inviting users to engage in various activities until October 2024.
JoyAt the TOKEN 2049 Summit in Singapore, BONK, a meme coin under the US blue-chip public chain Solana, announced that it would launch an ETP and hinted that an ETF might be launched in the future. The token has skyrocketed by more than 8,788% in one year.
Alex