NBC warns of fraudulent scheme linked to cryptocurrencies

Chea Serey, director general of the National Bank of Cambodia (NBC) warned yesterday of increased fraudulent activities linked to cryptocurrencies, claiming that as the Kingdom lacks regulations surrounding their use, they remain a risky investment tool. According to Serey, while there are no central bank policies that allow firms to promote cryptocurrencies, the NBC has been made aware that firms have been conducting workshops to raise funds through what is called an Initial Coin Offering (ICO), an unregulated means by which funds are raised for a new cryptocurreny venture. She said the NBC has alerted Cambodian financial institutions and warned them against accepting any cryptocurrencies. Officials are keeping a close eye on the matter, and are also trying to educate the public about ICO fraud schemes, she added. (Source: Phnom Penh Post)