Are You Breaking The Law By Trading Cryptocurrencies Without A License?

Cambodian authorities have now announced that domestic investors are required to obtain a license in order to allow them to buy, sell or trade cryptocurrencies. Without a license, these activities would now be considered illegal. In a joint statement that was published last month by the National Bank of Cambodia, the Securities and Exchange Commission of Cambodia and the General-Commissariat of National Police where they explained that the decision was made after they had seen a growth in cryptocurrency trading in the country. The statement declares;

“Competent authorities clarify that the propagation, circulation, buying, selling, trading and settlement of cryptocurrencies without obtaining license from competent authorities are illegal activities.”

The statement goes on to make a point of saying that failing to obtain this necessary license will result in penalisation in accordance with the relevant laws. They also go on to explain in the statement that involvement with cryptocurrencies can put you as the investor at risk from price volatility, cybercrime, as well as a lack of consumer protections, citing the Ponzi scheme OneCoin. They have not stated so far just what you, would need in order to get a license, but just the notion of it is likely to be a deterrent to some investors, or at least a barrier. This statement is an extension of the ban that was issued by the NBC late last year, that prohibited domestic financial institutions from offering account services to cryptocurrency investors and traders, according to a report that was released earlier on. So far, all cryptocurrency related projects, including initial coin offerings have operated in a grey area, as there has been no set out legal framework with which it fits in, providing the clarity that is all too often needed for investors.