The Securities and Exchange Regulator of Cambodia (SERC) and cryptocurrency giant Binance have teamed up to prepare and fine-tune the legal framework for regulating and developing the digital asset industry.
A memorandum of understanding (MoU) was signed to this effect in Phnom Penh on June 30 by SERC director-general Sou Socheat and Gleb Kostarev, Binance regional head of Asia.
Under the deal, Binance is “to share its technical knowledge and experience with SERC on digital asset operations … support the development of the legal framework for regulating and bolstering the digital asset businesses in the country … [and] conduct proper training on digital assets for the region”, the company said in a statement.
Kostarev said in the statement: “Within the Southeast Asia region where the blockchain and digital asset adoption rate is high, Cambodia has the potential to be a leading market.
“Binance hopes to add value to the Cambodian securities industry by providing extensive and professional knowledge of the digital asset market,” he said.
Speaking at the MoU signing ceremony, SERC’s Socheat underscored that the deal would lead to development in the Cambodian securities sector.
Binance will impart its knowledge, experience and technical skills to the SERC and provide advice concerning the processes and systems involved in digital asset trading as well as the development of the associated legal framework, he said.
In collaboration with the regulator, Binance will also “conduct dissemination activities and training on risk management within the digital asset segment for investors engaging in Cambodian securities”, he added.
Socheat believes the crypto exchange’s assistance will be “an important contributing input to the establishment of digital assets market [regulation] in Cambodia in the near future”.
“We hope to implement the digital asset innovation in the right way to Cambodia through the collaboration with Binance. SERC has not issued any digital asset licence currently, but we are working to develop proper regulations and expect this MoU to be a stepping stone for our future regulatory work,” he said.
Socheat confirmed that the SERC’s move to establish regulation of the digital assets industry was inspired by the rapid growth and opportunities witnessed in international markets.