Three of the Kingdom’s institutions issued a joint statement on Tuesday, warning the public that using, trading or advertising cryptocurrencies is illegal. They said various local blockchain projects which were operating without government approval pose serious risks to the public.
The message was posted on the Facebook page of the National Bank of Cambodia (NBC) and endorsed by the Securities and Exchange Commission of Cambodia (SECC) and the General Commissariat of National Police.
It called out ventures such as KH Coin, Suncoin, K Coin, One-coin and Forex coin, all of which operate similarly to bitcoin, which is currently the world’s top cryptocurrency by market capitalisation.
The statement said any entity conducting transactions in cryptocurrencies or advertising them would face legal action.
KH Coin co-founder In Mean expressed support for the statement but said he was disappointed when he saw his cryptocurrency’s name mentioned.
He said his project was designed to educate investors and the public to identify deceptive blockchain projects and avoid them.
“Our KH Coin has never deceived anyone. It is not a kind of deceptive investment which causes people to lose money. It has been three years since we started working on this project. We educate and instruct people not to deceive anyone,” he said.
Mean previously told The Post that he tried to monetise his cryptocurrency but he got slapped down by regulators.
He expressed hope that the central bank would realise the potential of blockchain, which is the technology behind cryptocurrencies.
It should undertake its own project and take a more liberal stance on cryptocurrencies in the future, Mean said.
Entrepreneurs using blockchain technology have been operating in a grey area until recently as the government made statements discouraging its use while also endorsing certain projects and even took part in the platform.
In March, Deputy Prime Minister Men Sam An spoke at the launch of a cryptocurrency project called Entapay.
The firm was embroiled in controversy when its claims of being endorsed by the Royal Cambodian Armed Forces were denied.