Cambodia Introduces New Law to Combat Crypto Scams, with Up to 5 Years in Prison and Heavy Fines

April 4 — Cambodia’s Senate has unanimously passed new legislation targeting scam operations, with a focus on cracking down on cross-border cryptocurrency-related fraud. The bill cleared the Senate with 58 votes and is awaiting formal approval from the King. Under the new law, those involved in organized fraud face 2 to 5 years in prison and a maximum $125,000 fine. Penalties could double for fraud involving organized groups or multiple victims. The legislation comes amid growing international scrutiny of scam schemes in Southeast Asia. The facilities in question are alleged to be tied to organized crime — including cryptocurrency scams — and serious abuses like forced labor. The U.S. and UK have previously imposed sanctions on related networks, and Cambodia has cooperated in extraditing individuals linked to these cases. Analysts say the law marks Cambodia’s first use of criminal legislation to directly target cryptocurrency-related fraud infrastructure. But its real-world effectiveness is widely seen as dependent on enforcement. Past weak regulatory enforcement remains a key variable for the law’s impact. Industry experts note the move reflects a global trend of stricter rules against cryptocurrency fraud, suggesting trading and on-chain platforms will likely face higher anti-money laundering (AML) and know-your-customer (KYC) compliance requirements going forward.