Byex Cambodia and Bitcoin in the Cambodian Context

Byex Cambodia: Company Overview and Services

Background: BYEX (often stylized as BYEX Cambodia) is a Phnom Penh-based cryptocurrency exchange platform that launched in the mid-2020s with a vision to serve Cambodia’s growing crypto market. The company brands itself as “The Most Trusted Exchange in Cambodia,” emphasizing a mission of secure, transparent, and user-friendly access to digital assets . BYEX Technology Limited operates the platform and has expanded beyond Cambodia’s borders – BYEX claims to serve over 1 million users worldwide as of 2025 . It positions itself as a global-class exchange with local presence, aiming to enable seamless interaction with blockchain technology and decentralized finance for Cambodian users.

Services and Features: BYEX offers a comprehensive suite of crypto trading services, comparable to major international exchanges. Users can buy and sell major cryptocurrencies like Bitcoin (BTC) and Ethereum (ETH), as well as a wide selection of altcoins (e.g. Dogecoin, Shiba Inu, Decentraland’s MANA) . In total, the exchange supports 100+ trading pairs covering both mainstream coins and newer tokens . Key trading features include spot trading for instant crypto purchases, margin trading with leveraged positions, and even derivatives products – BYEX provides futures contracts with up to 125× leverage and exchange-traded crypto index products . The platform also integrates financial management tools, such as interest-bearing crypto accounts (reminiscent of “Yuebao” money-market features) for users to earn yields on their holdings .

To facilitate entry and exit from crypto, BYEX supports fiat on-ramps and off-ramps through both peer-to-peer and third-party services. Users can deposit or withdraw value via C2C (customer-to-customer) transfers, bank wire, and integrated payment processors. Notably, BYEX partners with providers like Banxa, Simplex, and MoonPay to let users buy crypto using credit card or local payment methods . Early Cambodian users have praised the platform’s ease of cash-in/cash-out locally – for example, one user review highlighted the ability to deposit and withdraw in Cambodia conveniently, rating BYEX “10/10” for accessibility . The exchange is available on multiple platforms (web, iOS, Android) and offers 24/7 customer support, with a Khmer-language interface and community channels to cater to local users .

Platform Token: In mid-2023, BYEX introduced its own utility token called BYB as part of its ecosystem. According to exchange reports, BYB launched at an initial price of $0.001 and surged to as high as $0.20 during early trading . The BYB token grants holders certain benefits on the BYEX platform (such as trading fee discounts or exclusive features), aligning with a common trend among exchanges to foster user loyalty. The token launch also underscores BYEX’s effort to build a proprietary ecosystem akin to larger exchanges.

Legitimacy, Licensing and Regulatory Compliance

BYEX’s legitimacy is bolstered by multiple regulatory approvals, reflecting an emphasis on compliance in a region where crypto regulation is tightening. Domestically, BYEX is officially approved by the Securities and Exchange Regulator of Cambodia (SERC) – it operates under SERC’s FinTech Regulatory Sandbox program as a licensed digital asset trading platform . This approval followed Cambodia’s move to allow limited pilot of crypto exchanges (see Bitcoin in Cambodia section for regulatory context). Being SERC-approved means BYEX can legally offer crypto trading services within Cambodia, distinguishing it from the many unlicensed exchanges that Cambodian authorities have recently targeted (e.g. the November 2024 ban on overseas crypto sites).

In addition to its Cambodian license, BYEX has obtained international compliance credentials. Notably, the company holds Money Service Business (MSB) licenses/registrations from FinCEN in the United States and FINTRAC in Canada . These registrations imply that BYEX has met basic compliance and reporting requirements in those jurisdictions, particularly concerning anti-money laundering (AML) and counter-terrorism financing rules. By securing MSB status in the U.S. and Canada, BYEX signals to users and regulators that it is not a fly-by-night operation; rather, it aspires to operate transparently and meet global standards. The exchange’s focus on compliance is also reflected in its operations – for example, it employs security measures like two-factor authentication and claims a “security-first” approach, even advertising the use of high-speed matching engines (100,000 TPS) and a dedicated SAFU-like fund to protect users .

Table: Licensed Crypto Exchanges in Cambodia (SERC Sandbox)

Exchange	Launch (Approval)	Ownership/Backers	Key Offerings & Notes
Royal Group Exchange (RGX)	Jan 2024 (SERC Sandbox)	Royal Group (local conglomerate)	~100 digital assets (BTC, ETH, etc.) for spot and futures trading . Backed by Cambodia’s Royal Group; uses Binance’s SAFU security fund . Plans for RGX token and asset tokenization (e.g. real estate) announced .
BYEX Cambodia	2023 (Sandbox authorization)	BYEX Technology Ltd (international)	~100+ assets; spot, margin, and futures (up to 125× leverage) . Platform token BYB launched 2023 . MSB-licensed in US & Canada; branded as “Most Trusted in Cambodia” .
Cambodian Network Exchange (CNX)	Authorized 2023 (not yet public)	Telecom sector-affiliated (Sabay Digital)	Second local exchange under SERC/NBC FinTech Sandbox . As of mid-2025, CNX has not launched trading to the public. Expected to offer crypto trading once fully operational.

Sources: SERC, B2B Cambodia news ; Eric Kim analysis ; BYEX app data ; Binance Square .

Regulatory Compliance: Operating under the SERC sandbox means BYEX must comply with reporting and consumer protection rules set by the regulator. The sandbox environment implies close supervision and limited scope until full regulations are enacted. For instance, as of 2025, local exchanges in Cambodia (including BYEX and RGX) are prohibited from direct crypto-to-fiat transactions through the banking system . This means users typically trade crypto against stablecoins or USD₮ and use peer-to-peer methods to convert to Cambodian riel or USD outside the platform. BYEX appears to navigate this by using third-party payment gateways and C2C methods for deposits/withdrawals, without itself handling fiat bank transfers directly. Additionally, BYEX must adhere to AML/KYC protocols: users are required to verify their identity (KYC) when registering, and the platform monitors transactions for compliance. BYEX’s international MSB status further obliges it to watch for suspicious activities and report to financial authorities, which is crucial given regional concerns over crypto’s use in money laundering.

So far, no major regulatory infractions or controversies have been publicly reported regarding BYEX. Its licensing and proactive educational outreach (see below) have helped build an image of a legitimate player in Cambodia’s nascent crypto industry. SERC’s approval itself lends credibility – as of 2025, only a handful of exchanges have such approval, and BYEX is among this pioneering group.

User Reviews and Reputation

Given its recent entry, BYEX’s market reputation is still developing, but early indications are generally positive. The exchange’s own marketing touts trust and security, and the Cambodian crypto community has started to take note through events and word-of-mouth. BYEX’s mobile app has a 4.9 out of 5 rating on the Cambodian App Store (albeit from a small number of reviews), with users highlighting its intuitive interface and convenient local cash-out options . Cambodian traders appreciate that BYEX supports the local context – for example, integrating local payment methods and Khmer language support – which lowers barriers compared to using large international platforms that may not cater to Cambodian KYC documents or banks.

“I can cash out [and] cash in easily in Cambodia. I would recommend all locals to use this. 10/10.” – User review on BYEX app

Such feedback suggests BYEX has addressed a key pain point by providing an onshore exchange where previously locals had to rely on offshore exchanges (often using VPNs and unofficial channels). BYEX has also engaged in community-building, which bolsters its reputation. In mid-2025, the company organized free blockchain knowledge-sharing sessions and “BYEX Coffee” meetups in Phnom Penh, attracting 100+ participants ranging from Web3 beginners to professional traders . These events featured local crypto experts and entrepreneurs who shared insights and answered questions, underscoring BYEX’s stated mission to prioritize education and awareness in Cambodia’s crypto ecosystem . By empowering users with knowledge, BYEX is cultivating goodwill and trust in the community, which is critical in a country where many are still skeptical or unfamiliar with cryptocurrency.

In terms of broader reputation, BYEX markets itself as a transparent and compliant exchange. Its acquisition of foreign MSB licenses and the publicized partnership with known payment processors signal to users that BYEX is serious about long-term operation (as opposed to being a fly-by-night scam). To date, there have been no notable controversies associated with BYEX in news reports – no major hacks, fraud accusations, or regulatory crackdowns. This is in contrast to the numerous crypto-related scams that have plagued Cambodia (addressed later), so BYEX’s clean record so far is an asset. The exchange is still relatively new, however, and will need to maintain high standards of security and customer support to uphold its “trusted” brand identity.

One point to note is that BYEX is competing with both local and international platforms. While it is carving out a user base domestically, many Cambodian crypto-users are already on global exchanges like Binance (which, prior to being blocked, had ~200,000 Cambodian users) . BYEX’s ability to offer comparable features (like deep liquidity, low fees, advanced products) will affect how it’s viewed in the long run. Early analyses have pointed out that local exchanges in Cambodia lack some advanced functions and liquidity relative to giants like Binance . BYEX’s ongoing challenge will be to continue improving its platform and maintaining user trust so that it can truly live up to the “most trusted exchange” tagline in the face of both local competition (e.g. RGX) and the persistent appeal of international exchanges.

Recent News and Developments

In the past year, BYEX has been active in both product development and community engagement. A notable development was the launch of BYB token in late June 2023, which garnered attention as the token rapidly appreciated after release . The token launch event signified BYEX’s commitment to expanding its ecosystem. Additionally, BYEX rolled out new trading features such as leveraged ETFs and an upgraded matching engine (advertising throughput of 100,000 transactions per second) to ensure smooth trading during volatile periods . The platform’s continuous app updates (with version 6.x releases in 2025) show that BYEX is iterating on user experience and adding compatibility for more devices .

On the community front, BYEX’s “Blockchain Exploration Sessions” made headlines in local business media. Khmer Times and Cambodia Investment Review covered how BYEX hosted public workshops in June–July 2025 to boost digital literacy . At these events, speakers (including local Web3 founders and crypto educators) discussed blockchain fundamentals, real-world applications of crypto, and safety practices. The positive reception of these workshops – with participants calling for more frequent meetups – was a PR win for BYEX. It positioned the company not just as a trading venue but as a community hub for crypto knowledge, aligning with government calls for greater understanding of fintech. BYEX has indicated it will continue such outreach, planning regular workshops, “coffee chat” meetups, and content series across Facebook, Telegram, and TikTok to grow an informed crypto community in Cambodia .

So far, no significant controversies or negative press have emerged regarding BYEX. The exchange has not been implicated in the scam operations or regulatory violations that have troubled some crypto businesses in the region. One area to watch is how BYEX navigates evolving regulations – for example, if Cambodia moves from the current sandbox to a formal licensing regime, BYEX will need to obtain a permanent license. Additionally, the blocking of foreign exchanges in late 2024 indirectly puts pressure on BYEX to perform: with Binance and others officially inaccessible, more Cambodian users may flock to BYEX, and the platform must scale up accordingly. Its ability to handle growth and maintain smooth service will be critical (any prolonged outages or withdrawal issues could quickly erode trust).

In summary, the recent news around BYEX is largely positive – expansion of services, educational initiatives, and regulatory compliance. The company appears intent on establishing itself as a long-term player in Cambodia’s digital asset space. Moving forward, key developments to monitor will be BYEX’s market share in Cambodia (can it become the go-to exchange for Cambodian traders?), any partnerships with local banks or fintech firms to ease fiat conversions, and how it adapts to new laws once Cambodia formalizes crypto regulations beyond the sandbox.

Bitcoin in Cambodia: Legal Status and Regulations

Legal Status: In Cambodia, Bitcoin and other cryptocurrencies exist in a legally gray but tightly controlled space. The Cambodian government does not recognize Bitcoin as legal tender, and for several years it effectively deemed most crypto-related activities illegal unless specifically licensed. In 2018, the National Bank of Cambodia (NBC), SERC, and the National Police issued a joint statement warning that any unlicensed circulation, trading, or settlement of cryptocurrencies was against the law . At that time, Cambodia had no licensing framework for crypto, so this was essentially a blanket ban on using or trading Bitcoin and its peers. In practical terms, it meant individuals and businesses were prohibited from buying, selling, or advertising crypto within Cambodia’s jurisdiction, on pain of fines or other penalties . Even earlier, NBC had signaled skepticism: in 2014–2017, central bank officials (like Director-General Chea Serey) publicly stated that NBC would not recognize Bitcoin as it was not backed by any government and lacked a legal foundation .

However, the stance began to soften as the need for a regulated framework became apparent. Over the past few years, Cambodian authorities have moved from outright prohibition towards a cautious regulatory engagement with crypto. A timeline of key regulatory developments:

Year	Regulatory Development	Details
2018	Joint ban on unlicensed crypto	NBC, SERC, and Police issued a statement declaring it illegal to conduct cryptocurrency activities (trading, exchange, payments) without a license . Since no licenses were available then, this effectively banned crypto use.
2020	Launch of Bakong (CBDC platform)	NBC launched Project Bakong, a blockchain-based national payment system (often described as a CBDC) . Bakong isn’t cryptocurrency per se (it’s a riel-based digital money linked to bank accounts), but its success showed the central bank’s openness to blockchain tech for financial services. (By 2024, Bakong was used by 65% of the population) .
2022	Regulatory framework groundwork	SERC signed an MoU with Binance (June 2022) to develop legal frameworks for digital asset businesses . In Dec 2022, SERC also partnered with Cambo Trust Plc to implement a FinTech Regulatory Sandbox for crypto innovation . These steps laid the groundwork for licensing local crypto exchanges.
2023	Sandbox exchanges approved	SERC’s sandbox began admitting participants: Royal Group Exchange (RGX) became the first digital asset exchange approved under this program . Another platform (Cambodian Network Exchange) was authorized thereafter . These pilots allowed limited crypto trading under close supervision, signaling a shift from an outright ban to a test-and-learn approach.
Apr 2024	Reiteration of bank restrictions	NBC issued a public statement forbidding banks and microfinance institutions from handling cryptocurrency transactions . This was a reminder that, despite sandbox experiments, regulated financial institutions could not yet touch crypto (to “prevent risks to the public”). Banks could not offer crypto accounts or facilitate crypto payments for clients at this stage.
Nov 2024	Ban on foreign crypto exchanges	The Telecom Regulator of Cambodia (TRC) blocked access to 16 major overseas crypto exchange websites (including Binance, Coinbase, etc.), citing they operated “without proper licenses” . Over 100 domain URLs were blacklisted . While enforcement was imperfect (users could still use VPNs or mobile apps), this move reinforced that only locally authorized exchanges should be used.
Jan 2025	Digital asset rules for banks	NBC released the country’s first digital asset regulatory framework for banks and payment service providers . This introduced a classification of crypto assets: “Group 1” for stablecoins and tokenized securities (considered lower-risk and somewhat permissible), and “Group 2” for unbacked cryptocurrencies like Bitcoin (considered higher-risk) . Under these rules, banks may seek NBC approval to engage with Group 1 assets – e.g. issuing or handling stablecoins or tokenized assets – but Group 2 assets (Bitcoin, Ethereum, etc.) remain off-limits for direct bank involvement . Banks’ exposure to Group 1 crypto is capped at 5% of their capital . Shortly after, NBC for the first time allowed that licensed banks or payment processors could provide certain crypto-related services (like converting crypto to fiat or custody) once specifically authorized, but again not involving Bitcoin or other “unbacked” coins .

Current Regulatory Climate: Today, Bitcoin is not outlawed for individuals – owning or trading Bitcoin is possible through the sanctioned channels – but it is tightly regulated and not recognized as currency. The Cambodian riel remains the only legal tender, and using Bitcoin as a medium of exchange in shops or businesses is generally not accepted (and could be deemed illegal without a license). The government’s approach is to encourage blockchain innovation and fintech, but without undermining financial stability or the primacy of the riel. In effect, Cambodia’s regulators have carved out a path where licensed exchanges can operate for trading purposes, and banks might in the future handle tokenized assets, yet direct use of cryptocurrencies in the mainstream economy is restrained.

The motivations behind this careful stance are multifaceted:

• Financial Stability: Cambodia runs a heavily dollarized economy (over 80% of transactions use US dollars) . Officials fear that unchecked crypto usage could further weaken demand for the local currency (riel) or create parallel currencies. By limiting crypto and promoting Bakong (which is riel-based), they seek to boost monetary sovereignty . NBC Governor Chea Serey has indicated optimism that digital currency initiatives can strengthen the riel and reduce dependence on the dollar .
• Investor Protection: With no prior experience regulating crypto, authorities are wary of volatility and fraud. By keeping Bitcoin out of traditional banks and limiting trading to supervised sandbox exchanges, they hope to shield the general public from scams and wild price swings. There is an ongoing effort to educate the public that crypto investing carries high risks.
• Crime and Scams: Unfortunately, Cambodia has been noted as a hub for certain criminal syndicates exploiting crypto. A 2024 report by Chainalysis revealed a Cambodia-based online marketplace (Huione) processed $49 billion in crypto suspected to be tied to fraud since 2021 . The country has also been under scrutiny for cybercrime rings (often linked to gambling and human trafficking operations) that launder money via crypto . The government’s restrictive crypto policies (like the foreign exchange ban) are partly an attempt to disrupt illicit use of cryptocurrencies and shake the perception of Cambodia as a haven for cybercrime . High-profile actions, such as U.S. sanctions on entities linked to Cambodian officials, have added pressure on Cambodia to clean up crypto-related crime .

In summary, Cambodia’s legal stance on Bitcoin can be characterized as “controlled tolerance”. Bitcoin is not banned outright for private citizens, but legal avenues to acquire or use it are limited to those provided by regulated entities. There is no law that explicitly legalizes cryptocurrency as property or currency yet; instead there are circulars and regulations that implicitly allow it under certain programs and forbid it elsewhere. Businesses cannot accept Bitcoin for goods or services, and financial institutions cannot touch it directly. Only through the emerging framework (like SERC’s licensed exchanges and NBC’s future guidelines) might broader legal use be possible in the future. For now, anyone in Cambodia dealing with Bitcoin must tread carefully within the confines of these rules – essentially confining activity to trading/speculation on authorized exchanges, as opposed to integrating Bitcoin into the regular economy.

Usage Trends and Adoption in Cambodia

Despite the cautious regulatory environment, cryptocurrency usage has been on the rise in Cambodia, driven by grassroots interest and practical needs. In fact, Cambodia was ranked 17th globally in crypto adoption in 2024 by Chainalysis, an indicator of significant uptake relative to the size of its economy . This high ranking may surprise outsiders, but it underscores how certain use-cases like remittances and digital payments have fueled crypto growth:

• Remittances: Cambodia has a large diaspora of migrant workers (especially in Thailand, Malaysia, South Korea, etc.) who send money home. Traditional remittance channels can be slow or charge high fees. Many overseas Cambodians and their families have discovered Bitcoin and stablecoins as a cheaper, quicker way to send money across borders . For example, a joint venture between SBI LYHOUR Bank (Cambodia) and Ripple in 2021 enabled blockchain-based remittances, which gained traction among workers seeking to reduce costs . Analysts note that a significant portion of Cambodia’s crypto volume is related to these peer-to-peer transfers rather than domestic commerce.
• Unbanked Population: Over 70% of adult Cambodians are unbanked (have no bank account) . Yet mobile phone penetration is high, and mobile payment apps are commonplace. This combination makes cryptocurrency appealing as an alternative financial tool for those outside the formal banking system. People comfortable with mobile money platforms (like Wing or TrueMoney) can relatively easily transition to using a crypto wallet for saving or transferring value. The lack of banking access means many Cambodians have been willing to experiment with digital currencies that don’t require traditional bank intermediaries .
• Youth and Tech Adoption: Cambodia has a young demographic – the majority of crypto users are millennials or Gen Z. Surveys suggest about 66% of Cambodian crypto users are age 18–24, and if extended up to 34 years old, about 97% of users fall in this youth bracket . This young, tech-savvy cohort is often eager to explore new technologies like crypto. They learn about Bitcoin via social media or friends, and some are driven by the allure of investment gains. This demographic also overlaps with a rising startup and developer community interested in blockchain tech. For instance, crypto meetups and blockchain conferences have started to emerge: the Phnom Penh Bitcoin Meetup group counts hundreds of members, and the Cambodia Blockchain Summit 2025 drew entrepreneurs, students, and even government representatives to discuss crypto and CBDCs . Such events (often supported by local exchanges and tech firms) help build awareness and normalize crypto usage among the young population.
• Trading and Investing: A segment of Cambodian users is interested in crypto as an investment asset – seeking profit from trading rather than using it for transactions. With limited domestic investment options (Cambodia’s stock market is small, and real estate or gold have traditionally been popular), crypto presents a new avenue. Particularly from 2020 onward, some Cambodians started buying Bitcoin during its global bull runs, viewing it as a store of value or speculative asset. Statista market data projects that the number of cryptocurrency users in Cambodia will exceed 530,000 by 2025, roughly 3% of the population, with a crypto market revenue around USD $7–8 million annually . These figures, while modest in absolute terms, indicate rapid growth from virtually zero a few years prior.
• Gaming and NFTs: There are anecdotal reports of interest in crypto-linked online activities, such as play-to-earn games or NFT collectibles, among Cambodian youth. The country’s vibrant gaming community (Cambodia has a large base of online gamers) found overlap with crypto when NFT games (like Axie Infinity) became popular in Southeast Asia. While not mainstream, these niches have introduced more people to the concept of digital assets.

It’s important to note that crypto usage in Cambodia remains largely informal. That is, most activity has historically occurred outside official channels – via peer-to-peer trades on platforms like Binance P2P, or using foreign exchanges and wallets. Because of the earlier lack of local infrastructure, Cambodian crypto users became adept at using VPNs or offshore services. Even after the November 2024 ban on those exchanges’ websites, many experienced users continue to access them through workarounds . This means the actual adoption on the ground can be higher than what on-paper regulated numbers show, since a lot of it is under the radar.

Public Awareness and Attitudes: Among the general public, awareness of “Bitcoin” by name has grown, but understanding remains shallow. Urban populations, especially in Phnom Penh, are more likely to have heard of crypto. There is a mix of enthusiasm and skepticism. Some Cambodians see crypto as a pathway to financial freedom or quick profits, aligning with cultural desires for upward mobility and a bit of distrust in authority (Cambodia’s history of upheaval has instilled a sense of self-reliance) . The narrative of decentralization resonates with those who value independence from government control. On the other hand, many others are wary – often for good reason, as scams have proliferated. Ponzi schemes and fraudulent “investment opportunities” using crypto have victimized locals, leading to caution. The government and central bank frequently issue warnings about crypto risks. As one NBC official put it, “technology is a means to an end, not the end goal,” emphasizing that Cambodians should not adopt tech (like crypto) without seeing clear value and safety .

Financial Institutions and Businesses: On the whole, business adoption of Bitcoin in Cambodia is minimal. You will not commonly find shops or companies accepting Bitcoin for payments due to the legal and regulatory barriers. A few niche businesses or individual entrepreneurs might privately trade crypto or accept it, but it’s not advertised. The focus of adoption is more on individual usage (trading, saving, remitting) rather than businesses integrating crypto into operations. That said, there is growing interest in the underlying blockchain tech for business applications (supply chain, tokenization of assets, etc.), often with government encouragement, but that falls outside of using Bitcoin as currency.

In conclusion, usage trends in Cambodia show a community that is rapidly growing “crypto-curious,” especially among the youth and those with cross-border financial needs. Crypto fulfills certain needs (cheaper remittances, financial inclusion for the unbanked, speculative investment) that the traditional system hasn’t fully met. While still not mainstream for daily commerce, Bitcoin and crypto are becoming part of the conversation in Cambodia’s financial landscape. The challenge ahead is channeling this grassroots adoption into safe and regulated avenues so users are protected and broader economic goals (like maintaining currency stability) are not undermined.

Adoption by Local Institutions and Exchanges

Cambodia’s formal financial institutions (banks, microfinance institutions, etc.) have so far taken a very limited role in cryptocurrency adoption, largely due to regulatory restrictions. No major Cambodian bank offers Bitcoin trading or custodial services to clients as of 2025, and banks are explicitly prohibited from holding or transacting in unbacked crypto like BTC . The National Bank of Cambodia’s rules only allow banks to explore stablecoins or tokenized securities (Group 1 assets) with prior approval . Thus, you won’t find an ACLEDA Bank or Canadia Bank crypto savings account or a Bitcoin ATM at local banks. Traditional financial institutions remain on the sidelines, observing the space but not directly participating.

That said, there are signs of gradual engagement: some Cambodian banks have been involved in blockchain-based projects (like the Ripple remittance corridor via SBI LYHOUR Bank noted earlier), and banks are deeply involved in the Bakong digital currency network which familiarizes them with DLT (distributed ledger technology). Should regulations ease in the future, banks might step in, perhaps offering custodial services or partnering with exchanges. Indeed, NBC’s January 2025 framework hints at future integration, by outlining how banks could handle digital assets in a limited way . A possible scenario is banks working with stablecoins or facilitating crypto-to-fiat conversions once proper licensing is in place. For now, though, banks in Cambodia mostly promote the official Bakong e-wallet and e-banking services, and they echo NBC’s cautions about unregulated crypto.

Local Exchanges: In the absence of bank involvement, the heavy lifting for crypto adoption in Cambodia is being done by newly established local crypto exchanges. These platforms are the bridge for Cambodians to access Bitcoin and other coins within a regulated context. As discussed, the SERC FinTech Sandbox has incubated two exchanges: Royal Group Exchange (RGX) and Cambodian Network Exchange (CNX), with BYEX Cambodia effectively joining as another SERC-sanctioned exchange (though it isn’t always listed alongside RGX/CNX in summaries, likely because BYEX’s ownership is international).

• Royal Group Exchange (RGX): This is Cambodia’s pioneer crypto exchange, launched in January 2024. It is a subsidiary of the Royal Group, one of the country’s largest business conglomerates (spanning telecom, media, banking, etc.). RGX’s high-profile launch event was attended by government officials and business tycoons, underscoring institutional buy-in . RGX operates under SERC’s sandbox license and offers a range of cryptocurrencies for trading. It provides both spot trading and futures, and as of launch it listed 100+ digital assets including Bitcoin and Ethereum . Notably, RGX has technology partnerships with global players – it employs Binance’s SAFU fund for asset protection and uses infrastructure by X-Coins/X–Codes Solutions, with data hosted on local servers by Ezecom (a Royal Group telecom company) . This suggests a robust setup aimed at security and performance. RGX is also forward-looking: it announced plans for its own RGX token and to introduce asset tokenization (for example, tokenized real estate or securities) on its platform . Such initiatives align with making the exchange a hub for broader digital asset markets beyond just cryptocurrency trading. RGX’s emergence signaled that major Cambodian corporate players are embracing the crypto sector, albeit under regulatory oversight.
• Cambodian Network Exchange (CNX): Little is publicly known about CNX as it had not formally launched trading by mid-2025. It is understood to be the second exchange licensed in the sandbox, and it is affiliated with Cambodia’s telecom/tech sector . Industry chatter links CNX to Sabay Digital or related companies (Sabay runs an internet exchange point and has tech ventures). The idea is that another domestic player is gearing up to offer crypto services, perhaps focusing on network and infrastructure strengths. As of the latest reports, CNX had approval to operate in the sandbox but had not opened its platform to retail customers . We can expect CNX to launch in the near future, which would increase competition and options in the local market. Its telecom connection might enable interesting integrations (for instance, with mobile operators or internet services).
• BYEX Cambodia: Although not originally mentioned in the sandbox duo, BYEX effectively adds a third exchange option. It differentiates itself by its international background and aggressive feature set (margin trading, etc.), as previously described. BYEX’s presence means Cambodian crypto users are not limited to just one local platform – they can choose between at least two active exchanges (RGX and BYEX, soon possibly CNX), which can spur healthy competition on fees, services, and innovation. Each exchange has slightly different strengths: RGX has deep local corporate backing and perhaps more government rapport; BYEX has global ties and a broader array of trading products; CNX might leverage telecom channels. All are working within the sandbox, so all are constrained by the same rules (for example, none can integrate directly with the banking system yet, and all must implement strict KYC/AML).

Beyond exchanges, no Cambodian financial institution has formally adopted Bitcoin for treasury or investment purposes publicly. In some countries, we see companies holding Bitcoin in their balance sheet or banks offering crypto funds – not the case in Cambodia to date. The investment arms of some local tycoons might be privately investing in crypto abroad, but there’s no disclosure of that. One interesting development is the rise of crypto education and fintech programs at institutions: some universities in Phnom Penh have started seminars on blockchain, and SERC itself is conducting workshops on digital assets (as evidenced by SERC officials attending regional “Digital Assets in Finance” forums ). This suggests that institutional knowledge is building up, which will precede actual adoption.

Another angle is mobile payment providers and fintech startups: Cambodia has a thriving fintech scene for payments (e.g., Wing, Pi Pay, TrueMoney, etc.). While these are not crypto companies, they could play a role as on/off ramps if regulations allow. So far, none of the major e-wallets have integrated cryptocurrency due to the legal constraints. But the infrastructure is in place – for example, a user can withdraw cash from Wing and use it to buy USDT from someone, effectively bridging fiat to crypto informally. In the future, we may see partnerships like Wing or other e-wallets teaming up with exchanges to let users convert to crypto more directly.

Summary of Institutional Adoption: The main adopters in the Cambodian context are the crypto exchanges which act as quasi-institutions for this new asset class. Traditional financial institutions are watching from the sidelines but slowly warming up via learning and stablecoin experimentation. The government’s endorsement of the sandbox exchanges is significant – it indicates that crypto has a place in Cambodia’s financial sector development plans, even if it’s carefully circumscribed. If the sandbox exchanges prove successful (both in terms of technology and consumer protection), it could pave the way for broader adoption, such as full licensing regimes or integration with banking channels for crypto.

For now, a Cambodian looking to invest in Bitcoin legally would likely go through one of the local exchanges (RGX or BYEX) or use a foreign platform at personal risk (since those are unofficially accessible but officially discouraged). As more local platforms come online and regulations mature, adoption by institutions may increase – e.g., we might eventually see Cambodian banks partnering with those exchanges to facilitate large trades for clients, or offering custodial services for digital assets alongside traditional securities. The trajectory is cautiously forward, aligning with regional trends (neighboring Thailand, for instance, also licenses exchanges and is seeing banks invest in crypto companies).

Investment Climate for Bitcoin in Cambodia

The investment climate for Bitcoin and cryptocurrencies in Cambodia can be characterized as nascent, cautiously optimistic, but still high-risk and underdeveloped. Several factors contribute to this climate:

• Regulatory Uncertainty vs. Progress: On one hand, Cambodia is making progress in establishing a regulatory framework, which is a positive sign for investors. The fact that exchanges are being licensed and rules are being written indicates a move towards legitimacy. Investors often crave regulatory clarity, and Cambodia is slowly moving from a black-box ban to a clearer set of do’s and don’ts. This could attract crypto-related businesses and capital in the medium term, as companies see an opportunity to get in early in an emerging market with government support. The MoU with Binance and consultations with tech companies suggest Cambodia wants to learn from global players and possibly become a hub for certain fintech innovations . On the other hand, until comprehensive laws are in place, there is still uncertainty. The current regime (sandbox authorizations, central bank circulars) could evolve in unpredictable ways – for example, if a major scam or financial issue arises, regulators might clamp down harder. Investors must be mindful that Cambodia’s institutions are still developing expertise in overseeing crypto, so the rules could tighten or shift with short notice (as seen with the sudden ban of foreign exchanges in 2024).
• Market Size and Opportunities: Cambodia’s crypto market is relatively small today (under $10 million annual revenue, as noted) , but that implies significant growth potential. The country has a young population of ~17 million and a rapidly digitizing economy. If even a fraction of the unbanked adopt crypto, or if remittances flow through crypto channels, the user base could expand quickly beyond the forecast 530k users. From an investment standpoint, this growth curve could be attractive. We have seen some early movers: for instance, international exchanges and brokers are eyeing Cambodia – a recent example is ATFX (a forex broker) securing a SERC license in 2025 to offer digital asset trading . This indicates a belief that a customer base exists and that the climate is improving. Similarly, the presence of players like Royal Group in crypto and possibly telecom companies (via CNX) shows local big businesses see a future here. The Cambodia Investment Review and other business media have been highlighting blockchain and crypto more, which can pique interest among local investors who follow those outlets.
• Foreign Direct Investment and Crypto: The climate for foreign crypto businesses has been lukewarm – you cannot just set up a crypto exchange or ICO in Cambodia without navigating a lot of hurdles. But the partnership approach (sandbox) means the door is not closed. If Cambodia succeeds in its sandbox experiments, it may invite more foreign investments to set up regulated exchanges, crypto startups, or blockchain projects in the country. The tax environment is also a consideration: currently, Cambodia doesn’t have crypto-specific taxes, but general tax law would treat crypto profits as income or capital gains (though enforcement of such on individuals is another question). If Cambodia were to offer tax incentives or a fintech-friendly policy (as some smaller jurisdictions do), it could become more attractive. As of now, investing in Bitcoin in Cambodia is done at personal initiative; there are no government incentives or programs to encourage it.
• Risk Factors: The investment climate is tempered by notable risks. Scams and fraud remain a problem – many Cambodians have lost money to pyramid schemes falsely involving crypto. This can create a negative perception that deters legitimate investment. Also, the link between crypto and illicit activities in Cambodia’s recent past (scam centers, etc.) adds a reputational risk; serious investors might be wary of any association with that. Corruption and governance issues in Cambodia’s economy at large can’t be ignored either – a Transparency International index ranks Cambodia poorly, which means any emerging sector, including crypto, could be susceptible to corrupt practices if not carefully managed . Investors will watch how transparent and fair the licensing process is (so far SERC has been methodical, e.g., only two exchanges initially, presumably to ensure control).
• Public and Institutional Sentiment: The general sentiment from authorities is that crypto is not to be promoted as a wild investment, but rather cautiously explored. As such, don’t expect the Cambodian government to ever endorse Bitcoin investment the way, say, El Salvador did. Instead, they will likely continue to stress using crypto in ways that complement the local economy (like Bakong or possibly a future central bank digital token) rather than replacing it. This means the climate is more favorable for blockchain investments that align with inclusion or efficiency goals than for pure cryptocurrency speculation. For example, a startup doing supply chain tracking on blockchain or a fintech building on Bakong might get support, whereas a proposal to make Bitcoin an official payment method would be shot down. Investors should align with the national priorities (financial inclusion, innovation sandbox, etc.) to have a smooth path.
• Infrastructure and Education: On a practical level, investing in Bitcoin in Cambodia still faces infrastructure challenges. Outside of Phnom Penh and major towns, digital literacy is low and internet connectivity can be spotty. This limits the pool of potential crypto users in the near term. The education initiatives by exchanges like BYEX and events like the Blockchain Summit are trying to address this gap . Over time, as more people understand crypto and have access to stable internet (which is improving), the base for crypto investment enlarges. The climate thus is gradually improving as infrastructure develops – for instance, 4G coverage is broad and 5G is being tested, mobile wallets usage is common, all of which form a foundation on which crypto usage can grow.

Outlook: In the short term, the investment climate for Bitcoin in Cambodia remains high-risk and speculative. Any individual investing in Bitcoin does so in a context where there is no legal investor protection specific to crypto – if an exchange collapses or a hack occurs, there’s no clear recourse. The government is still building capacity to supervise this domain. So early investors are essentially pioneers, potentially reaping high rewards but also facing the brunt of any policy reversals or market mishaps.

In the medium to long term, if Cambodia stays on its current path, we can expect a more structured market. Perhaps by 2025–2026, a Digital Asset Law could be in place (SERC has hinted at developing comprehensive regulations). This would formally legalize certain activities and outline licensing, which would greatly improve the climate by giving legal certainty. More local companies could then safely incorporate crypto into their business (for example, a remittance firm using stablecoins legally, or a real estate developer issuing tokenized property shares). Foreign crypto companies might enter via joint ventures with Cambodian firms – much like Gulf Binance in Thailand , we might see something like “Cambodia Crypto Exchange in partnership with [Big Exchange]” once laws permit it.

For now, Cambodia’s crypto investment scene is small but growing under watchful eyes. The trajectory is one of gradual opening: starting from an outright ban, moving to sandbox trials, and presumably towards full regulation. Bitcoin itself, being an “unbacked” asset, will likely remain at the fringe of what regulators are comfortable with (they prefer stablecoins or tokenized real assets). But if global trends continue and Bitcoin becomes widely recognized as a legitimate asset class, Cambodia will not want to be left behind. Already being 17th in adoption globally shows that the Cambodian people have interest; the challenge is aligning that with the government’s comfort.

Conclusion: Cambodia presents an interesting paradox for Bitcoin – high grassroots adoption potential on one side, and strict official constraints on the other. The result is an investment climate that is cautiously opening up. Entrepreneurs and investors who navigate the regulatory maze can tap into an underserved market with youthful demand. The presence of licensed exchanges like BYEX and RGX is a promising sign, creating local avenues for Bitcoin investment where none existed a few years ago. As regulatory confidence builds, the climate should improve further, making Cambodia an emerging market to watch in the Southeast Asian crypto landscape.

Overall, Bitcoin in Cambodia is moving from the shadows into a regulated light: the coming years will determine how bright that light gets and whether Cambodia can foster a thriving, innovative crypto sector without compromising its financial stability and security. If it strikes the right balance, both investors and ordinary users stand to benefit from this new digital frontier.

Sources:

• Cambodia Securities Regulator (SERC) and NBC statements on crypto regulations 
• Khmer Times, Forbidden Crypto: NBC clarifies stance (Apr 2024) 
• Fulcrum (ISEAS), The Flawed Approach of Cambodia’s Cryptocurrency Ban (Jan 2025) 
• Cryptoforinnovation.org, Cambodia’s Crypto Interest Reflects Wider Policy Changes (2025) 
• B2B Cambodia, Cambodia Launches First Blockchain Digital Assets Exchange (Jan 2024) 
• Binance Square News, BYEX launches platform token BYB (June 28, 2023) 
• Cambodia Investment Review, BYEX Strengthens Blockchain Literacy… (July 2025) 
• App Store – BYEX App, features and user reviews 
• Eric Kim, Khmer Bitcoin: Adoption and Context in Cambodia (2024)