The National Bank of Cambodia (NBC) has authorized commercial banks and payment institutions to offer services involving Category 1 crypto assets , such as backed or stable cryptocurrencies, while continuing to prohibit unbacked cryptocurrencies like Bitcoin. This regulatory shift, formalized in a directive on December 26, aims to align Cambodia with global financial innovations while maintaining safeguards. Authorized institutions must seek NBC approval and can provide services such as crypto-to-fiat exchanges, crypto asset transfers, and custody services. However, they are barred from using customers’ crypto assets for their own purposes. Cambodia previously banned cryptocurrency trading and transactions due to risks like money laundering and fraud. While stable cryptocurrencies are increasingly recognized worldwide for trading and payments, economic experts, such as Hong Vanak, argue their benefits to Cambodia's economy remain limited. However, banks offering crypto services m...