The National Bank of Cambodia (NBC) has granted permission to commercial banks and payment firms to offer crypto-related services, but only for cryptocurrencies that are backed by fiat and not for standalone tokens like Bitcoin and Ethereum. The new law requires banks and payment institutions to seek approval from the NBC before providing crypto services, and they will be able to convert crypto into fiat currencies, facilitate transfers between accounts, and offer custody services. However, they are prohibited from using clients' crypto assets for their own benefit. This move shows Cambodia's gradual shift toward the crypto industry, although it lags behind other countries. Earlier this month, Cambodia blocked 16 major crypto exchanges for failing to obtain licenses. While cautious about cryptocurrencies, Cambodia is exploring digital currencies pegged to fiat in order to strengthen its local currency and reduce reliance on the U.S. dollar.



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