The digital economy is rapidly reshaping financial landscapes across Southeast Asia, and Cambodia is making strategic moves to position itself at the forefront of this transformation. At the heart of this evolution stands the Cambodia Digital Asset Exchange (CAMDAX), emerging not just as a market participant but as a key collaborator in shaping national digital asset regulations.
This pivotal role was underscored during Digital Cambodia 2019, the country’s largest national technology exhibition, held from March 15 to 17 in Phnom Penh. Organized by the National Institute of Posts, Telecommunications, and Information & Communication Technology (NIPTICT), with support from major entities like the Smart City Alliance Cambodia, UnionPay, Oracle, Cisco, and Huawei, the event spotlighted Cambodia’s ambition to build a robust digital infrastructure for its growing economy.
Bridging Innovation and Regulation: The Fintech Policy Forum
One of the most significant sessions at the summit was the Fintech Policy Forum, where regulators and industry leaders addressed the delicate balance between innovation and oversight in financial technology.
Sou Socheat, Director General of the Securities and Exchange Commission of Cambodia (SECC), emphasized that fintech—despite its technological foundation—falls squarely within the financial domain and therefore requires regulatory supervision. He highlighted the shift from traditional fundraising via financial intermediaries to decentralized models such as digital asset offerings, noting an increasing number of firms approaching the SECC for licensing.
👉 Discover how emerging markets are shaping the future of digital finance.
While no cryptocurrency exchange has yet received official licensing in Cambodia, Socheat confirmed that several applications are under review. To qualify, applicants must comply fully with Cambodian laws, including stringent Know Your Customer (KYC) and Anti-Money Laundering (AML) protocols.
In response to public curiosity about Bitcoin, Socheat acknowledged a shift in perspective. Although the National Bank of Cambodia (NBC) previously declared Bitcoin illegal due to limited understanding, evolving global trends have prompted reconsideration. Today, there's growing recognition of Bitcoin both as a potential payment method and a legitimate asset class.
CAMDAX: A Catalyst for Regulatory Clarity
Chen Jinfeng, Co-Founder of CAMDAX and Chairman of the Smart City Alliance Cambodia, echoed Socheat’s views on compliance being foundational to sustainable innovation. He stressed that proper licensing ensures institutional accountability, which in turn enables standardized products and services essential for a healthy financial ecosystem.
On Security Token Offerings (STOs), Chen drew parallels between STOs and traditional IPOs, stating that when conducted within legal frameworks, they are functionally similar—only differing in the use of blockchain-based tokens to represent securities.
However, Chen urged Cambodia to accelerate its regulatory timeline. With countries like Japan and the United States already establishing clear guidelines, Cambodia risks falling behind unless it acts decisively.
Japan’s landmark 2017 amendment to its Payment Services Act formally recognized virtual currencies as legal tender and established a regulated environment for exchanges. It also led to the creation of the Blockchain Coalition for Japan (BCCC), the world’s first self-regulatory body for the blockchain industry.
Similarly, the U.S. Securities and Exchange Commission (SEC) evaluates ICOs on a case-by-case basis under existing securities law, ensuring investor protection while allowing innovation to flourish.
“These examples show that advanced economies are embracing innovation through smart regulation,” Chen noted. “But their bureaucratic processes often slow implementation. This delay presents a unique opportunity for Cambodia—to leapfrog ahead by adopting agile, forward-looking policies.”
Shaping Policy Through International Collaboration
CAMDAX isn’t waiting passively for regulations to emerge. The exchange has been actively involved in policy formulation, participating in high-level discussions with Cambodian regulators. Notably, Chen Jinfeng accompanied delegations from both the SECC and Ministry of Economy and Finance on an official visit to Japan’s Financial Services Agency (FSA), studying Japan’s regulatory framework firsthand.
This international engagement reflects a strategic effort to import best practices while tailoring them to Cambodia’s economic context. By learning from mature markets, CAMDAX aims to help design a regulatory model that fosters innovation without compromising security or transparency.
With legislation expected soon, CAMDAX is positioned to become Cambodia’s first licensed digital asset exchange, setting a precedent for compliance-driven growth in the region.
👉 Learn how compliant crypto platforms are driving adoption in emerging economies.
Core Keywords
- Cambodia digital currency policy
- CAMDAX exchange
- Fintech regulation Cambodia
- Licensed cryptocurrency exchange
- Digital asset regulation
- STO vs IPO
- KYC AML compliance
- Blockchain policy development
Frequently Asked Questions
Q: Is cryptocurrency legal in Cambodia?
A: While the National Bank of Cambodia previously restricted public use of cryptocurrencies as payment, regulatory attitudes are evolving. The Securities and Exchange Commission is currently reviewing applications for licensed digital asset exchanges, signaling a move toward formal regulation rather than prohibition.
Q: Will CAMDAX be Cambodia’s first licensed crypto exchange?
A: Yes, CAMDAX is actively working with Cambodian authorities to become the nation’s first officially licensed digital asset exchange once relevant legislation is enacted.
Q: What is the difference between an STO and an IPO?
A: Both raise capital by issuing ownership stakes. However, an IPO issues shares via traditional stock markets, while an STO uses blockchain-based tokens that represent securities. When compliant with regulations, STOs offer similar investor protections as IPOs but with added efficiency through tokenization.
Q: How does Japan regulate cryptocurrency?
A: Japan regulates crypto through its amended Payment Services Act, recognizing virtual currencies as legal payment methods. Exchanges must register with financial authorities and adhere to strict AML/KYC rules. Japan also supports industry self-regulation via the Blockchain Coalition for Japan (BCCC).
Q: Why is fintech regulation important for innovation?
A: Clear regulation builds trust among investors and users. It prevents fraud, ensures market integrity, and creates a stable environment where startups and established firms can innovate confidently.
Q: What role does CAMDAX play in policy-making?
A: CAMDAX has been deeply involved in advising Cambodian regulators on digital asset legislation. Through direct collaboration with the SECC and Ministry of Economy and Finance—including international study tours—CAMDAX helps shape a balanced regulatory framework that supports innovation and compliance.
👉 See how global policy trends are influencing next-generation digital exchanges.
Cambodia stands at a critical juncture. With proactive leadership from institutions like CAMDAX and forward-thinking regulators, the country has a rare chance to become a regional leader in digital finance—not by rushing into uncharted territory, but by building a secure, inclusive, and innovation-friendly ecosystem grounded in smart regulation.