Cambodia’s Crypto Industry Presses Forward Despite Legal UncertaintyApril 3, 2018
The cryptocurrency sector in Cambodia is marching forward despite there being no comprehensive regulatory guidelines on digital currency. The Phenom Penh Post recently published a report suggesting that stakeholders in Cambodia’s crypto sector appear to be pressing forward despite the country’s regulatory ambiguity surrounding virtual currencies.
In mean, founder of Cambodia’s Khmer Crypto Foundation told the daily that people investing in the crypto industry in Cambodia are doing so carefully because of the legal uncertainty. “It is not yet clear who is supposed to regulate cryptocurrency,” said Mr. Mean, adding that “it could be the NBC (National Bank of Cambodia) or the SECC (Securities and Exchange Commission of Cambodia), but it is not yet clear whose job this will be.”
While the country hasn’t explicitly outlawed possession of digital currency, the government, in December last year reportedly prohibited “all microfinance institutions and national banks from advertising, buying, selling, and trading cryptocurrency.”
Cambodians launch Altcoins despite the legal grey area
In November 2017, Mr. In Mean launched his cryptocurrency, with local media outlets suggesting that the country’s regulatory ambiguity prevents him from making money with it. Mr. Mean has stated that “he gives out his digital coin, telling people it does not have any value.” He says that his project, Kchoin, works as some educational tool, and not as a speculative asset. Mr. Mean developed a wallet for his coin, and now he claims that about 5,000 Cambodians already hold the Khcoin. He also says that he has developed a crypto exchange platform for trading Cambodian cryptocurrencies. He is, however, waiting for clear guidelines on regulation before he launches such.
So far, Mr. Mean’s exchange has proved to be a trying venture for him. He says that he “used his own money and even lost several thousands of dollars to hacking during testing,” adding that he believes it is very important for the country to show that it is willing to embrace the crypto industry and even have its own digital currencies.
Entapay to conduct Initial Coin Offerings in Cambodia
Earlier in March 2017, Entapay, another local altcoin was launched. The project had previously been subject to controversy, with the team behind it releasing a press statement suggesting that the project was backed by the government. The PR Director at Entapay, Mr. Richard Lee, seems to have distanced Entapay from the claims, saying that “we never stated that we had a formal backing by the government. We only stated that we had its support.” Mr. Lee revealed that the company doesn’t have a commercial license, but it expects to obtain one soon.
The local firm is presently planning to hold an ICO for its digital token. The Initial Coin Offering is now conducting pre-sales, only accepting ETH from investors. The investors will be issued with what the company calls “Enta Diamond Certificates” that they can use to buy the Entapay tokens. Despite the existing legal grey area, investors are looking to take advantage of the gradually growing crypto industry in Cambodia.