The Securities and Exchange Commission of Cambodia (SECC), the regulator of Cambodia’s securities industry, yesterday signed a partnership agreement with Camnext Global to boost its capabilities in financial technology.
The new partnership, officially a “Memorandum of Understanding (MoU) of Fintech Exclusive Partnership”, will tackle a plethora of issues related to fintech, including the regulation of cryptocurrencies.
Sou Socheat, the director-general of the SECC, said the new partnership is key to continuing the rapid development of the securities market in the kingdom.
“We are cooperating to create new products and facilitate the use of existing ones through the newest technology in the market,” he said.
“Through fintech we can facilitate certain transactions, improve communication and find new instruments for the market.”
Mr Socheat added that the new partnership would allow them to explore risks and opportunities in the market and said they will make their findings public for the benefit of all investors.
Rogers Chan, the co-founder and director of Camnext, said this ground-breaking venture will play a vital role in normalising the use of cryptocurrencies in the country.
“Among all the old and new concepts that come with fintech, cryptocurrency is certainly at its bedrock. It tremendously changes the concept of financial service and the definition of equity and securities,” he said.
Mr Chan explained that cryptocurrencies such as bitcoin have been the target of severe criticism in recent weeks, with experts stoking fears of a possible bubble in the market. He said that in Cambodia particularly, experts and authorities have both warned investors against using digital currencies.
“By signing this MoU today we commit ourselves to work very closely with SECC and the Ministry of Finance to advise and form a lawful regime for a regulated crypto-assets exchange,” Mr Chan said.
“With proper, systematic regulations in place in Cambodia, we can alleviate many of the security issues and scalability that global public investors are currently facing in the unregulated cryptocurrency markets.”
Mr Chan said the MoU binds his company to cooperate with the SECC in other areas, including researching new financial tools and developing local human capital.
The National Bank of Cambodia (NBC), the country’s central banking authority, warned recently against the use of cryptocurrencies, arguing that the use of virtual money entails considerable risks for users in the kingdom as they are not backed up by any financial authority and their value is not tied to the economic situation.