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Binance signs MoU with Cambodian regulators
While unlicensed crypto activities are deemed illegal in Cambodia, the world’s largest cryptocurrency exchange signed a Memorandum of Understanding (MoU) on June 30 that could have a profound impact on the future of the sector.
What can we expect from the Cambodia-Binance MoU?
The memorandum of understanding (MoU) that was signed between Binance and the the Securities and Exchange Regulator of Cambodia (SERC) comes at a time where Cambodian authorities are issuing warnings on crypto activities and the need of obtaining licensing but where no guidelines or procedures have been set out to do so.
The MoU therefore aims to help Cambodia develop a supportive and forward-looking regulatory framework for digital assets. This is a major step for the crypto landscape in the country, as regulations can be expected to come into effect in the near future. With a clear licensing regime, foreign companies could start operating in the country, which could have a striking impact on Cambodia’s digital economy.
Binance could of course benefit greatly from this MoU, with the company’s regional head for Asia stating that he believes Cambodia has the potential to become a leading market.
One of the elements of the MoU is also the sharing of Binance’s knowledge and experience in digital asset transactions with the Cambodian authorities. Binance’s expertise is well established and it has some of the finest experts in the industry. The company has some 40 offices in 10 different countries and operates worldwide. Its compliance teams have worked closely with governments and institutions to try to find the right balance between innovation and protection.
In addition, through the MoU, Binance has committed to providing digital asset training for the country. Ensuring that all actors involved in the birth of the industry in Cambodia are competent and aware could greatly help to streamline the process and build a solid foundation for the long term.
In a more general sense, having an educated population on the matter is a strategic way of not having to impose drastic and coercive regulations therefore allowing the business environment to thrive while ensuring protection for both consumers and businesses.
SEA : a new crypto hub?
Southeast Asia is increasingly gaining attention in the cryptocurrency scene, with Singapore being a breeding ground for cryptocurrency regulations and guidelines. Although its view towards cryptos is mixed, the Monetary Authority of Singapore (MAS) is committed to becoming Asia’s first technology-driven financial centre and has adopted a proactive position regarding digital assets. Unlike some notoriously lax jurisdictions, Singapore has strict controls on cryptocurrency activities but remains ultimately pragmatic and open-minded, with a long run strategy.
In addition, countries such as Thailand, Vietnam and the Philippines have some of the highest adoption rates of digital assets in the world. According to recent surveys, these three countries are actually in the current top 5.
Each country now seems to have its own preferences within the market, resulting in a complementary and attractive ecosystem that has become one of the most dynamic in the world.
Meanwhile, Cambodia’s place on the scene is still relatively unknown, as the government has made it clear in its latest statement that crypto activities require a licence and none has yet been granted, but the country does have an active crypto community and the fintech sector is doing well.
The status quo could be about to change with the signing of a powerful memorandum of understanding with Binance, the current leader in the crypto scene.
In conclusion
The MOU between Binance and Cambodia is ultimately a great act of corporate governance and part of a series of pro-digital measures to ensure the transition to a future economy.
This is a relief for all crypto-enthusiasts in the country and an incredible opportunity for all businesses. If Cambodia plays its cards right, Cambodia could become a potential new crypto hub and therefore a highly attractive destination for blockchain companies to start a business.
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