Cambodia passes new legislation to combat crypto scams, with a maximum sentence of 5 years in prison and hefty fines.

BlockBeats message, April 4. According to the Cambodian Senate, Cambodia has unanimously passed a new piece of legislation targeting scam compounds, with a focus on cross-border scam activities involving cryptocurrencies. The bill was passed with all 58 votes in favor, and is pending the king’s approval before it officially takes effect.

The new law stipulates that individuals involved in organized scam activities will face imprisonment of 2 to 5 years and a fine of up to 125k USD; if the case involves group operations or multiple victims, the penalties will be increased, with the maximum potentially doubling.

The backdrop for this legislation is that the issue of scam compounds in Southeast Asia has continued to receive international attention. Relevant facilities have been accused of being involved in organized crime, including crypto scams, and are accompanied by serious problems such as forced labor. Previously, countries including the United States and the United Kingdom had imposed sanctions on related networks, and Cambodia also cooperated in extraditing individuals involved.

Analysis suggests that this law marks Cambodia’s first time to directly tackle crypto-related scam infrastructure through criminal legislation. However, the market broadly believes that the actual impact still depends on enforcement strength. The long-standing issue of inadequate regulatory enforcement may remain a key variable affecting the law’s effectiveness.

From an industry perspective, this move reflects the ongoing tightening of regulation worldwide against crypto scams. In the future, trading platforms and on-chain platforms may face higher compliance requirements in anti-money laundering (AML) and user identity verification (KYC).