The Binance crypto exchange, one of the biggest crypto exchanges in the world, announced on June 30, 2022, that it had signed an MoU with the Securities and Exchange Regulator of Cambodia (SERC).
Details of the MoU
According to the MoU, Binance will help SERC develop Cambodia’s securities industry. To achieve this objective, Binance will share technical experience and knowledge with SERC when it comes to digital assets. The leading exchange will also work with SERC to develop a legal framework for the regulation of digital assets in the country. Finally, Binance will work with SERC to conduct training on digital assets in the country.
What the Leaders Had to Say
Commenting on the MoU, Mr. SOU Socheat, who is the Delegate of Royal Government in Charge as Director-General of SERC, stated that they hoped to implement digital asset innovation correctly in Cambodia. Socheat added that to date, SERC had not issued any digital asset license. However, they were working to create proper laws. He expects that the MoU was a step in the right direction when it came to digital asset regulation.
Gelb Kostarev, the Regional Head of Binance in Asia, also commented on the MoU. According to him, Cambodia had the potential to become a leader in Southeast Asia, where blockchain and digital asset adoption was high. Kostarev added that Binance was hoping to add value to Cambodia’s securities sector by offering extensive and professional knowledge on how digital asset markets work.
How This Helps Binance
Within Southeast Asia, there is a lot of ambiguity when it comes to the regulation of the crypto sector. This is not good for Binance’s centralized exchange (CEX) model. Legal clarity allows Binance to thrive and expand its services without the risk of being shut down. It also instills confidence in investors, when they are operating within a regulated environment.
By working with the regulator to create laws for the sector, Binance will ensure that any laws created for the crypto sector are friendly to its operations. Additionally, it will ensure that the exchange is not hit with any surprises when laws are finally created for the sector.
This is in line with Binance’s aggressive stance toward achieving legal recognition in as many jurisdictions as possible. For instance, the exchange was given clearance in France via one of its subsidiaries to offer digital asset services in the country. However, the exchange has thus far been unable to obtain clearance from the UK’s regulators, which would significantly boost its operations around the world.
The Significance of Southeast Asia
Southeast Asia is one of the most important regions for the crypto industry. It has a large population, which is young and tech-savvy. They have already demonstrated a huge interest in the crypto sector. With the right laws in place, the region holds huge potential, especially for centralized crypto exchanges. By acquiring legal approval in one country, it could have a domino effect, where Binance would be able to have a clear leading position in the region.