Cambodia, Malaysia and Kenya’s Crypto Regulations Are Heating Up

This Week in Crypto Compliance & Regulations | by Coinfirm

London, 30th October – Coinfirm has a look at crypto compliance regulations and blockchain policy changes by governments around the world. This week Cambodia, Malaysia and Kenya are making headlines.

Cambodia Central Bank Launches Bakong Blockchain System

Wednesday saw the National Bank of Cambodia roll out the ‘Bakong’ blockchain-based banking system to improve financial inclusion. Bakong’s launch grants Cambodians a state-sanctioned platform for conducting instant mobile payments, with QR codes and phone numbers connecting digital wallets over a blockchain.

Bakong is hosted atop the Hyperledger Iroha blockchain. However, unlike other CBDC projects, it is not based on digitally native money – it is entirely fiat-backed. This move by a developing market getting ahead of financial heavyweights follows the news of the Bahamas’ ‘Sand Dollar’ CBDC recent rollout.

Malaysia’s Digital Assets Guidelines Now In Force

The Securities Commission Malaysia has issued a revised digital assets guideline for Initial Exchange Offerings (IEO) and Digital Asset Custodians (DAC). 

Under the guidelines “IEO platform operators will be required to assess and conduct the necessary due diligence on the issuer, review the issuer’s proposal and the disclosures in the whitepaper, and assess the issuer’s ability to comply” with AML requirements.

Kenya’s Central Bank Not Wanting To Be Left Out 

The Central Bank of Kenya’s (CBK) Governor Dr. Patrick Njoroge has spoken about not wanting to be left out of the crypto economy.

Njoroge said that – “We [the CBK] are already having discussions with other global players, in various ways, around the introduction of Central Bank Digital Currencies. The push comes as a result of mushrooming of private cryptocurrencies and we are already feeling left out and need to create our own space” but noted the compliance risks – “The space for cryptocurrencies needs to be well mapped out so as to address such concerns as money laundering and financing of illicit activities.”