Binance and SERC will work together to develop digital assets regulations in the country. SERC is looking to leverage Binance’s technical expertise and experience in the field to develop its own legal framework for the digital asset market.
Cryptocurrencies are not regulated in Cambodia, and any unlicensed activity involving these digital assets is highly prohibited. The partnership could prove pivotal for the South Asian country, where any crypto-linked activity has been deemed illegal since 2018.
Gleb Kostarev, Binance’s regional head of Asia, told Cointelegraph:
“Economically, Cambodia has been in the top 10 fastest growing countries over the last 10 years, and the annual economic growth has been consistent. Furthermore, the population of the young and tech-savvy is high. With all these advantages, we believe that Cambodia can be a forerunner in the Web3 and digital asset industry. It would be an honor to be part of that process.”
Asia has become a crypto hotspot over the years, with several nations in the region adopting a pro-crypto approach. Thailand, Singapore, Malaysia and the Philippines have come up with progressive regulations to promote the use of crypto assets in their respective countries.
Binance has paid particular attention to having good regulatory relations, especially since its 2021 debacle that saw nearly half a dozen countries issuing compliance warnings against it. The leading crypto exchange has mended its relations since then and has forged critical partnerships in Asia over the past year in countries such as Thailand, Malaysia and Singapore.
The crypto exchange has also made a name for itself in offering governments technical expertise in crypto and helping them regulate the nascent sector. The exchange signed a $15 million investment agreement in Bermuda to teach and educate the community about crypto.
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Binance’s regulatory in-roads in emerging markets have caught the attention of many, including Alex Gladstein, chief strategy officer at the Human Rights Foundation. Gladstein lauded Binance’s recent expansion into emerging markets such as Asia, Africa and the Middle East, saying:
“While Western cryptocurrency companies are buying Superbowl ads and sports stadium rights, Binance is ruthlessly and custodial taking over emerging markets in Asia, Africa, the Middle East, and Latin America. They are winning.”
In May, Binance signed a similar memorandum of understanding with the government of Kazakhstan to help it with crypto adoption and regulations. Similarly, it signed an MoU with the Dubai World Trade Centre Authority in December 2021 and later bagged a license to operate in the country as well.