In response to rising concerns over cybercrime linked to cryptocurrency, Cambodia has taken decisive action by blocking access to 16 crypto exchange websites, including major platforms like Binance and Coinbase. The move, however, does not affect the accessibility of their mobile applications, which remain available to users in Cambodia.

This decision follows a series of high-profile crypto scams in the region, particularly involving Cambodia-based platforms that have been flagged as hubs for illegal activities. Cambodia has been under increasing international pressure due to its reputation as a hotspot for cybercrime and fraudulent operations, especially those involving cryptocurrency transactions.

One of the most significant platforms contributing to these issues is Huione Guarantee, a Cambodian online marketplace that has facilitated a variety of illicit activities, including “pig butchering” scams and money laundering. According to a report by blockchain analysis firm Chainalysis, Huione Guarantee was involved in over $49 billion worth of crypto transactions since 2021, making it a major player in regional cybercrime activities. Additionally, another report by Elliptic revealed that merchants on the platform were involved in illegal services, including technology and data laundering, with transactions amounting to around $11 billion.

In addition to Huione Guarantee, Huione Pay, a major Cambodian payment provider, has also been linked to cybercriminal activities, including receiving $150,000 in cryptocurrency from North Korean hackers.

The Cambodian government’s decision to block these websites is part of its broader strategy to regulate the country’s growing cryptocurrency market while tackling the rising tide of online scams. The ban focuses specifically on crypto exchange websites, while the apps for Binance and Coinbase remain accessible, signaling the Cambodian authorities’ efforts to strike a balance between supporting the crypto industry and curbing illegal activities.

Despite these regulatory measures, the decentralized nature of cryptocurrencies poses a challenge to complete oversight. Government regulation, while necessary, may have limited effectiveness in addressing scams and fraud in the industry, as seen in the ongoing issues surrounding Cambodia’s crypto landscape.