Bitcoin Used by Chinese in Cambodia as Means for Gambling
An estimated 90 percent of businesses in Sihanoukville, including hotels, restaurants and casinos, are now owned by the Chinese,” a Southeast Asian studies expert from Lund University in Sweden says.”
“Competent authorities have recently observed that cryptocurrencies such as Kh Coin, Suncoin, K Coin, Onecoin, Forex coin and other similar cryptocurrencies have been propagated, circulated, bought, sold, traded and settled actively in Cambodia,” stated by the National Bank of Cambodia (NBC), the Commission of Cambodia, and the General-Commissariat of National Police.
The announcement keeps on clarifying that the previously mentioned crypto-related exercises are not controlled by the specialists and will make potential dangers people in general and society.
“The issuance of cryptocurrencies is not backed by collateral,” they wrote. Secondly, “Investment in cryptocurrencies may incur losses due to the volatility of its face value.” Then they claim there is a risk of “cybercrime and loss of funds due to the system being hacked.” Lastly, not only is there “no customer protection mechanism” with cryptocurrencies, but the regulators also noted the risks of money laundering and financing of terrorism since “the user of cryptocurrencies is an anonymous person who has no identity or historical records.”
Despite this, Cambodia hopes to rival other Asian gaming hubs like Macao, Singapore and Manila. Gambling is illegal for locals since 1996. So the city hopes to attract Chinese tourists, who are not allowed to gamble in their home country. Despite a recent crackdown on online gambling, they are coming in droves.
What’s more: agents collect the money in China, using WeChat Pay or in Bitcoin, and a local representative in Cambodia provides a cash advance.
The Financial Action Task Force, a crime battling association established by the G7, as of late set Cambodia on its dark rundown of nations powerless against illegal tax avoidance, referring to the absence of guideline of its gambling clubs, which the United Nations Office on Drugs and Crime has cautioned could be utilized to launder the returns from sorted out crimes, including methamphetamine dealing.
Sihanoukville has additionally turned into a hotbed for online casinos. Nevertheless, the Cambodian Securities and Exchange Commission previously warned citizens of the risks of trading or investing in cryptocurrencies. More developments in this front are expected to unfold soon.
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