The current Prime Minister of Cambodia, Hun Manet, has struck a cautious yet forward-looking stance on Bitcoin, cryptocurrencies, and blockchain technology. Under his leadership (since taking office in August 2023), Cambodia’s government acknowledges the transformative potential of digital assets and blockchain, but places strong emphasis on oversight, stability, and social protection . In recent years, the Prime Minister and his administration have balanced enthusiasm for innovation with prudent regulation, aiming to modernize Cambodia’s financial system without jeopardizing economic security or public trust . This engaging update will walk through the Prime Minister’s views, official policies, and public statements – painting a motivational picture of Cambodia’s crypto journey up to mid-2025.
Rising Interest in Crypto, Met with Caution
Cambodia has seen a surge of grassroots interest in cryptocurrencies, especially among its youth. In fact, the country ranked 17th globally in a 2023 crypto adoption index . Remittances and peer-to-peer payments drive much of this usage, and over 66% of Cambodian crypto users are between 18–24 years old, with almost all under 35 . This youthful enthusiasm is fueled partly by gaps in traditional finance – many young Cambodians see crypto as a tool for financial inclusion and quick cross-border transactions. The Prime Minister recognizes this trend and the economic opportunity it represents. He has noted that “crypto is growing in popularity in Cambodia and clearly has broader potential if conducive policies are put in place” .
At the same time, the official attitude from the top is one of careful optimism. The Prime Minister’s general view, echoed by regulators, is that cryptocurrency brings both opportunity and risk. The government sees promise in blockchain-based finance – for example, as a way to boost financial inclusion and modernize services – but remains “keen to balance its risks” . In practice, this means Cambodia allows certain digital innovations to develop under supervision while firmly policing others . The overarching priorities guiding Hun Manet’s stance are improving state oversight, supporting the national currency (the riel), and protecting citizens from fraud . This balanced approach can be summed up as: embrace the future, but with eyes wide open.
Notably, Cambodia’s authorities – with the Prime Minister’s backing – do not recognize any cryptocurrency as legal tender. The riel remains the only official currency. As early as 2018, regulators declared it illegal to conduct cryptocurrency activities (trading, exchanges, etc.) without a license . And in late 2022, National Bank of Cambodia (NBC) officials reiterated that stance, warning that “digital coins are not legal in Cambodia, and we don’t recognise or accept them as financial instruments” . This clear message from the central bank (whose policies align with the Prime Minister’s economic strategy) underscores that unregulated crypto has no official standing inside the country’s financial system.
Embracing Blockchain Innovation and Digital Currency
While wary of unlicensed cryptocurrencies, the Cambodian government – including both former PM Hun Sen and current PM Hun Manet – has shown enthusiasm for blockchain technology’s positive uses. A signature initiative is Project Bakong, a blockchain-based digital payments platform launched by the central bank. Bakong went live in 2020 and functions as a quasi–central bank digital currency (CBDC) or “tokenized deposit” system for the riel . It allows users to hold a Bakong e-wallet linked to their bank account for instant P2P transfers and payments. The project has been a resounding success in driving digital payments: by 2024 over 65% of Cambodia’s population was using Bakong for transactions . This aligns perfectly with the Prime Minister’s goals of boosting cashless payments and financial inclusion. He often points to Bakong as an example of Cambodia harnessing fintech innovation to benefit everyday people, through faster payments and broader access to banking services.
Hun Manet’s attitude toward blockchain is broadly positive when it comes to such applications. In June 2024, he highlighted that blockchain is one of the “new emerging technologies” ASEAN nations must embrace cooperatively. Speaking at a regional science and tech meeting, the Prime Minister stressed that multilateral collaboration is key to managing advances like AI, blockchain, and data science in a way that benefits all . This statement reflects his forward-looking mindset – he sees Cambodia playing a role in the region’s digital transformation and advocates working with international partners to build common frameworks for emerging tech. In short, Hun Manet welcomes blockchain as a tool for development, so long as it’s introduced responsibly. Indeed, the country hosted its first Cambodia Blockchain Summit in March 2025, bringing enthusiasts, developers, and policymakers together to explore blockchain’s future in Cambodia’s economy . The very existence of such an event – with support from universities and the tech community – signals the government’s encouragement of blockchain innovation and desire to cultivate talent in this sector.
Importantly, even Cambodia’s central bank leadership is not “anti-crypto” across the board; they simply prioritize safety. NBC Governor Dr. Chea Serey (a key figure in shaping policy, working under the government’s guidance) described herself as a “blockchain enthusiast” in 2023 – while simultaneously urging young people to be cautious with speculative crypto investments . This captures the nuance of the Prime Minister’s position: embrace the technology and its benefits, but approach cryptocurrency speculation carefully. In public forums, officials frequently note that blockchain can improve efficiency and transparency in finance, but that coins like Bitcoin remain highly risky and unbacked. The new regulatory framework (discussed below) explicitly labels unpegged cryptocurrencies such as Bitcoin as Group 2 high-risk assets, in contrast to more stable, asset-backed tokens . The message is clear and consistent from the top: Cambodia will modernize and digitize, but it will not gamble with its financial stability or consumer safety.
Firm Regulatory Stance and Recent Crackdowns
To translate the Prime Minister’s cautious outlook into action, Cambodia’s government has rolled out concrete regulatory measures in the past few years. The aim is to develop a controlled crypto sector on Cambodia’s terms, rather than leave the country exposed to wild speculation or criminal abuse. Under Hun Manet’s administration (and building on steps begun under his predecessor), Cambodia moved to tighten oversight of cryptocurrency trading in 2024, even as it prepared new rules to permit some crypto activity in a regulated environment.
One major move came in November 2024, when the Telecommunication Regulator of Cambodia (TRC) – in coordination with financial authorities – blocked access to 16 overseas crypto exchange websites, including popular platforms like Binance and Coinbase . These exchanges had been operating without authorization, and the government deemed this decisive step necessary to “protect consumers” and assert sovereignty over the digital finance space . The ban sent a strong signal of the Prime Minister’s stance: if a crypto business isn’t licensed and under Cambodian jurisdiction, it has no place serving Cambodian users. Officials indicated several reasons for this crackdown: to “strengthen state oversight” of the crypto market and funnel users toward regulated local platforms instead . There’s also a monetary policy angle – Cambodia runs a heavily dollarized economy (over 80% of transactions use U.S. dollars), so leaders hope that by reining in uncontrolled crypto and promoting the official Bakong/riel system, they can reduce dollar dependence and bolster the Cambodian riel’s stability . In essence, the Prime Minister supports a “Cambodia-first” approach in which home-grown fintech solutions and properly vetted exchanges take precedence over foreign crypto operators.
Hot on the heels of the exchange ban, Cambodia introduced its first formal regulatory framework for digital assets. In January 2025, the NBC (with government approval) released new rules allowing commercial banks and licensed payment service providers to handle certain crypto assets – a huge step forward in legitimizing parts of the crypto industry . Under these rules, stablecoins and tokenized securities (assets with secure backing) are classified as “Group 1” and may be used in banking with the central bank’s permission . By contrast, volatile unbacked cryptocurrencies (like Bitcoin) are “Group 2” and remain off-limits for now . Banks must obtain NBC approval case-by-case and even then can only have very limited exposure (Group 1 crypto holdings are capped at 5% of their capital) . The Prime Minister’s endorsement of these prudent limits shows his focus on preventing excessive risk in the banking sector. Notably, NBC’s directive explicitly excluded Bitcoin and similar coins – even as it green-lit stablecoin services – meaning Cambodians can’t yet buy a coffee with Bitcoin via their bank, but they may soon be able to convert and transmit stable-value crypto under their bank’s oversight .
These calibrated regulations reflect Hun Manet’s balanced philosophy: rather than an outright ban on crypto, Cambodia is creating pathways for “good” crypto usage (like asset-backed tokens and blockchain-based banking products) while strictly curbing “bad” usage (anonymous trading, unlicensed exchanges, and coins seen as speculative gambles). The head of government’s fingerprints are clearly on this policy. Speaking to investors and officials, the Prime Minister has emphasized that Cambodia wants to foster fintech innovation – he even noted that sectors like cryptocurrency exchange services and digital payment systems could present investment opportunities – but only after cleaning up their reputation as gray markets linked to crime . In other words, legitimate crypto business is welcome if it plays by Cambodia’s rules. Indeed, the Securities and Exchange Regulator of Cambodia (SERC) has been working on licensing local crypto exchanges in a sandbox environment since 2022, with technical input from industry players (including an MoU with Binance to develop regulations) . These efforts indicate a gradual opening: under Hun Manet’s watch, Cambodia is laying the legal groundwork for a home-grown digital asset industry that can operate safely under the government’s “tight, controlled embrace” .
Clamping Down on Scams and Illicit Crypto Use
A driving force behind the Prime Minister’s cautious stance is the determination to combat criminal abuses of cryptocurrency. Unfortunately, Cambodia in recent years became entangled in the dark side of the crypto boom – namely, online fraud and money laundering schemes that used crypto as a conduit. Hun Manet has consistently voiced zero tolerance for such illicit activities, and his government has taken visible action to stamp out crypto-related scams.
One headline issue has been the proliferation of so-called “pig butchering” scams and shady investment schemes operating out of Cambodia. In 2024, a Chainalysis report revealed that a Cambodia-based online marketplace called Huione Guarantee (part of a larger conglomerate) processed a staggering $49 billion worth of crypto transactions linked to scams since 2021 . Even more troubling, investigations have exposed ties between some scam networks and individuals within the country’s elite power circles . Facing these realities, Hun Manet publicly acknowledged the threat: he ordered the formation of a high-level commission in late 2023 to crack down on online scam operations and “modern tech fraud” that often involve crypto. By mid-2025, international bodies like the UNODC and U.S. Treasury were actively scrutinizing Cambodia’s role in transnational cybercrime, adding urgency to the government’s response .
The Prime Minister’s resolve to clean up the crypto space can be seen in decisive enforcement moves. For example, in March 2025 the National Bank (with government backing) revoked the license of Huione Pay, a payment provider tied to the aforementioned scam-linked group . Around the same time, the U.S. Treasury’s FinCEN formally blacklisted the Huione network as a “primary money laundering concern” facilitating illicit crypto flows . Rather than defend any implicated local actors, the Cambodian government’s message was clear: no one is above the law. By stripping licenses and cooperating with international partners, the Prime Minister signaled that Cambodia will not be a haven for crypto criminals. In public remarks, he has stressed that the country must shed its image as a scam hub and restore confidence in its digital economy. Law enforcement has been instructed to “proactively embrace digitalization” in tracking cybercrime, while new cybersecurity legislation is being developed to strengthen protections . All these efforts align with Hun Manet’s commitment to foster a safe digital environment – one where blockchain technology can thrive, but fraudsters cannot.
It’s worth noting that Cambodia’s stance on crypto crime isn’t happening in isolation. Prime Minister Hun Manet has engaged diplomatically on the issue as well. His assumption of office in 2023 was seen by some international observers as an opportunity to reset and improve governance. For instance, U.S. officials hoped the new leadership would help curb scam networks; and indeed cooperation has increased. Cambodian authorities have been working with regional neighbors and tech firms (like through the Binance/SERC partnership) to develop better monitoring and legal frameworks to shut down illegal crypto activities . The upbeat takeaway is that Cambodia is learning from past missteps and actively course-correcting – a stance undoubtedly championed by the Prime Minister who wants to protect both the country’s citizens and its international reputation.
Future Outlook: Confident, Controlled Growth
Looking ahead, the outlook for cryptocurrency and blockchain in Cambodia under Prime Minister Hun Manet is cautiously optimistic and highly strategic. Both the government’s words and deeds suggest that Cambodia will continue on a path of measured integration of crypto technology into its economy. Rather than a free-for-all, expect a future where crypto plays a growing role under the watchful eye of regulators and with an emphasis on real economic value (as opposed to pure speculation).
In the near term, the Prime Minister’s administration is expected to maintain its prudent approach – officials have indicated they will “continue their cautious approach” to ensure stability . However, this caution comes with an openness to adaptation. Recognizing that outright bans are not a long-term solution, policymakers are exploring ways to make the crypto ecosystem safer and more accessible. For instance, if Cambodians are to favor local regulated exchanges (instead of risky offshore ones), those local platforms must be attractive and trustworthy. The government is likely to support improvements in local crypto services (lower fees, better user protection) so that home-grown exchanges become “viable alternatives” to foreign giants like Binance . There is also ongoing discussion about potentially licensing foreign exchanges to operate in Cambodia in the future – but only if they comply with strict anti-money laundering (AML) and consumer protection rules set by Cambodian authorities . In other words, Cambodia’s doors aren’t closed to global crypto companies, but the Prime Minister will insist on strong safeguards and reciprocity (external platforms must play by Cambodia’s rules if they want access to its market).
Another pillar of the future vision is the continued development of central-bank-led digital infrastructure. The Bakong system will likely expand further, possibly integrating with any emerging crypto platforms. Analysts have suggested that linking Bakong with licensed crypto exchanges could “encourage use of the riel” by allowing seamless conversion between the national digital currency and other tokens . This aligns perfectly with Hun Manet’s dual goals of modernizing finance and strengthening the local currency. We can anticipate the government investing in more digital literacy programs and fintech incubators, inspired by the success of Bakong and the enthusiasm from events like the Blockchain Summit 2025. The Prime Minister often speaks about Cambodia’s ambition to become an upper-middle income country by 2030 and a high-income country by 2050, and technology is a cornerstone of that vision. Blockchain, in his view, can be part of Cambodia’s leapfrogging in financial services – provided it’s harnessed wisely.
In summary, Cambodia’s top leadership sees a bright future for blockchain and crypto – one that is harnessed for inclusive growth, tightly regulated for safety, and integrated with the national interest. Prime Minister Hun Manet’s opinion can be characterized as optimistic but not naive. He champions the benefits of blockchain innovation (from banking efficiency to potential transparency gains) and wants Cambodia to ride the wave of the digital economy. At the same time, he remains vigilant to the risks: currency instability, scams, and unchecked speculation have no place in the Cambodia he envisions. As of mid-2025, the country stands at a new frontier: welcoming the opportunities of Web3 and digital finance, while firmly guided by the motto “safety first”. This balanced, upbeat approach – fully endorsed by the Prime Minister – means Cambodia is carving out its own path in the crypto world, one full of promise, anchored by prudence.
Sources: Prime Minister Hun Manet’s public statements and Cambodia’s recent fintech policies ; National Bank of Cambodia and SERC announcements ; Cambodian media reports on crypto regulations and scams ; Analysis of Cambodia’s crypto adoption and government strategy up to 2025 .