Digital Cambodia 2019: Building Foundations for Economic Growth
The premier national technology exhibition "Digital Cambodia 2019" was held March 15-17 in Phnom Penh, hosted by Cambodia's National Institute of Posts, Telecommunications, and Information & Communication Technology (NIPTICT). This landmark event brought together government agencies and private sector leaders—including the Cambodia Smart City Alliance, UnionPay, Oracle, Cisco, and Huawei—to establish digital infrastructure for the country's rapidly expanding economy.
Balancing Innovation and Regulation in Fintech
The conference's "Fintech Policy" forum addressed critical questions about digital currency governance, featuring Cambodia Securities Exchange Commission Director General Sou Socheat and CAMDAX co-founder Chen Jinfeng as key speakers.
Director Socheat emphasized:
"Financial technologies innovating banking, insurance, and payment services remain within financial frameworks requiring oversight. We're evaluating cryptocurrency exchange licensing applications with strict compliance requirements—KYC and AML protocols must be rigorously implemented."
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Cambodia's Evolving Crypto Landscape
Key developments discussed:
- Regulatory Framework: Since June 2018 joint declaration by Cambodia's National Bank, SEC, and National Police prohibiting unlicensed crypto activities
- Licensing Progress: No fully licensed exchanges currently operational, but multiple applications under review
- Bitcoin Perception Shift: From initial prohibition to growing recognition as potential payment method/store of value
CAMDAX's Chen highlighted Cambodia's strategic opportunity:
"Progressive nations like Japan and the U.S. demonstrate how regulatory clarity fosters innovation. Cambodia can accelerate its digital economy by learning from these models while maintaining robust investor protections."
CAMDAX's Regulatory Engagement
The exchange has taken proactive steps:
- Collaborating with Cambodian SEC and Ministry of Finance on virtual currency legislation
- Participating in study visits to Japan's Financial Services Agency
- Preparing to apply for Cambodia's first digital asset exchange license upon relevant laws enactment
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Frequently Asked Questions
Q: What's Cambodia's current stance on cryptocurrency trading?
A: While unlicensed crypto activities remain prohibited, regulatory frameworks are being developed for licensed exchanges.
Q: How does CAMDAX ensure compliance?
A: Through active participation in policymaking, international regulatory exchanges, and implementing strict KYC/AML procedures.
Q: What advantages does Cambodia offer crypto businesses?
A: Potential for early-mover benefits in Southeast Asia's developing digital economy with proper regulatory alignment.
Q: When will Cambodia license its first crypto exchange?
A: Pending final legislation, with CAMDAX positioned as leading candidate upon framework completion.
Q: How does CAMDAX view security token offerings (STOs)?
A: As legitimate financial instruments when fully compliant, analogous to traditional securities offerings.
Q: What lessons can Cambodia learn from Japan's crypto regulation?
A: The value of clear legal classifications and industry collaboration through bodies like Japan's Blockchain Collaboration Consortium.