Cambodia Crypto Ban: What Happened and How It Affects Crypto Users

When Cambodia crypto ban, a government decision to prohibit all cryptocurrency trading and services within the country. Also known as crypto prohibition in Cambodia, it was announced in 2023 as part of a broader effort to control financial risks and protect citizens from fraud. The central bank, National Bank of Cambodia, called crypto a "high-risk speculative asset" and ordered banks, payment providers, and exchanges to cut off all crypto-related services. But here’s the twist: people didn’t stop trading. They just moved underground.

Why did Cambodia do this? Unlike Thailand or Indonesia, which built licensing systems, Cambodia chose outright prohibition. The fear wasn’t just volatility—it was scams. Dozens of pyramid schemes, like the infamous FTX-style Ponzi schemes, fraudulent platforms promising impossible returns that collapsed and left thousands with nothing, had flooded the country. Many Cambodians, especially young people and small business owners, lost life savings. The government reacted fast, but without clear alternatives. Meanwhile, crypto regulation Cambodia, the lack of legal framework for digital assets left users with no recourse. No licensed exchanges, no consumer protection, no way to report fraud. And yet, P2P trading on Telegram and WhatsApp exploded. Cash-in, cash-out via local vendors became the new norm.

The ban didn’t kill crypto—it just made it riskier. Now, anyone using crypto in Cambodia does so at their own risk. Banks can freeze accounts if they spot crypto transactions. Merchants who accept crypto could face fines. Even sending crypto to a friend could raise red flags. But demand hasn’t dropped. People still use it for remittances, cross-border trade, and as a hedge against inflation. The real story isn’t the ban—it’s how people adapted. You’ll find posts here that break down what happened after the crackdown, how scams still thrive in the shadows, and why regulators in neighboring countries are watching Cambodia’s experiment closely. This isn’t just about one country. It’s about what happens when a government tries to shut down something the people already use.