FSA Council Moves to Regulate Cambodia Digital Asset Businesses
The Financial Services Authority Council has taken a major step toward strengthening Cambodia securities market by approving a draft proclamation on digital asset businesses proposed by the Securities and Exchange Regulator of Cambodia. The regulation is designed to introduce clear and enforceable rules for companies operating in the digital asset space while enhancing investor confidence and safeguarding market integrity. By setting formal standards for participation in this fast growing sector, the Council aims to bring greater transparency and accountability to digital asset activities that are increasingly shaping the financial landscape.
High Level Leadership and Multi Regulator Coordination
The approval was granted during the 27th FSA Council meeting held in Phnom Penh on December 24 and chaired by Aun Pornmoniroth, Deputy Prime Minister and Minister of Economy and Finance, in his role as Chairman of the Council. He was joined by senior officials from the Ministry of Economy and Finance, including Secretaries of State Ros Seilava and Ngy Tayi. The meeting brought together top leaders from key financial regulators, including the Securities and Exchange Regulator of Cambodia, the Trust Regulator, the Insurance Regulator of Cambodia, and the Accounting and Auditing Regulator, reflecting a coordinated national approach to overseeing complex financial innovations.
Focus on Licensing and Operational Standards
Council members reviewed seven agenda items prepared by SERC experts, with detailed discussions on policy direction and technical considerations. The core of the draft proclamation focuses on licensing and management requirements for digital asset businesses, establishing a legal and operational framework tailored to the risks and opportunities of this emerging sector. Through in depth deliberation, the Council ensured that the proposed rules align with Cambodia broader financial sector development objectives and are consistent with internationally recognized best practices.
Clear Structure and Investor Protection Measures
According to a SERC press release, the approved draft proclamation is structured into nine chapters and 63 clauses. These provisions outline procedures for licensing, license renewal, and compliance obligations for digital asset service providers and digital asset agents. The rules are designed to ensure market integrity, transparency, and investor protection, applying to all digital asset related activities except those used as a payment mechanism within Cambodia. This clarity is expected to reduce regulatory uncertainty and support responsible business growth.
Supporting National Fintech and Economic Policy
By endorsing this draft regulation, the FSA Council reinforced its commitment to implementing Royal Government policies aimed at sustainable economic growth. The move aligns with the Cambodian Financial Technology Development Policy covering the period from 2023 to 2028, which seeks to promote innovation, strengthen financial inclusion, and build a dynamic fintech ecosystem. Since its launch in October 2023, the policy has emphasized balancing digital advancement with financial stability and expanding access to financial services, particularly in underserved areas.
Conclusion
The approval of the draft digital asset business regulation marks a significant milestone in Cambodia financial sector evolution. By introducing a comprehensive and coordinated regulatory framework, the FSA Council is laying the groundwork for a safer, more transparent, and more competitive digital asset market. As the sector continues to evolve, this proactive approach positions Cambodia to harness innovation while protecting investors and supporting long term economic development.