Binance signs MoU with Cambodian regulators

Namrata Shukla
Source: Pixabay

Binance may have experienced a bit of a hiccup with its previous global expansion approach of first establishing its presence in a country and then complying with regulations later. As this caught up, the cryptocurrency exchange giant pivoted strategies and was now working with regulators to develop a legal framework and establish trust. The latest one on Binance’s multinational checklist was the Southeast Asian Cambodia.

As per Binance’s official press release, the exchange, along with the Securities and Exchange Regulator of Cambodia [SERC], will collaborate to develop the securities sector in the country. It also signed a Memorandum of Understanding [MoU] with the regulators and will share technical knowledge and experience on digital asset operations.

It also mentioned two other means through which it will help bolster the digital asset environment in the country.

“Binance to support the development of the legal framework for regulating and bolstering the digital asset businesses in the country.
Binance to conduct proper training on digital assets for the region.”

The regulatory clarity in Southeast Asian countries still lacks clarity, just like in the rest of the world. However, Binance’s vision to work with the regulators provides an edge in the competitive centralized exchange business. Therefore, whenever the country decides to accept digital assets as a legal entity, Binance would be the first in line to serve the customers.

This signing followed French regulators clearing a Binance subsidiary to offer digital asset services in May. With a green light from France, Binance could further expand into Europe. Although the United Kingdom has remained wary of its operations and the entirety of the cryptocurrency space, other countries’ approval could sway the naysayers too.

Binance in Southeast Asia

Meanwhile, as Binance continues to build bridges in Southeast Asia, the company’s head of the Asia-Pacific market believed it was an apt time to rebuild the industry with strong players. As per reports, Leon Foong noted,

“While there’s some market correction now, this will be a time of greater resilience. The projects that survive are the ones that will be here for the long run. We want regulators to see that resilience so they can have comfort and clarity on regulating this new asset class.”

Binance was currently working on launching a Thai exchange through a joint venture with Gulf Energy Development. Meanwhile, the Thai regulators have granted only eight digital asset licenses. Still, with Binance’s approach to appease the regulators, it may make it to the list, and Foong was also sure about this strategy.

“It helps to have a strong local partner with investments in key strategic infrastructure like telecoms and energy, and has the appetite for future-proofing their business model.”

Thailand banned crypto as payments in April but promoted crypto as an alternative investment. Major players in the country like Bitkub, a cryptocurrency exchange, handle over 90% of the trading volume, which would be tough to challenge. However, Foong said that Binance saw “other players in the space as partners” and would add to the growth of Binance.

He added,

“We do not believe that in any market where penetration is below 10%, [monopoly is] the right market classification… Our focus will be on growing the market and educating end users, regulators and existing corporate leaders on how blockchain can be applied to their processes.”