Cambodia passes anti-scam law…up to 5 years in prison for virtual asset crimes

Cambodia’s parliament has approved a new bill to crack down on scam rings and illegal facilities that exploit virtual assets (cryptocurrencies). The Cambodian Senate passed the draft unanimously without amendments.

According to FinanceFeeds on the 3rd (local time), the bill includes penalty provisions that would impose prison terms of between 2 and 5 years and fines of up to $125,000 on those involved in operating organized scams. In aggravated cases involving organized crime or multiple victims, sentences can be increased by up to twofold. The bill is set to take effect after receiving royal assent.

The legislation comes amid intensifying international scrutiny of scam compounds in Southeast Asia. Such facilities have drawn global criticism not only for crypto-related fraud but also for alleged forced labor. A U.S. State Department report last year pointed out that Cambodian authorities had treated related cases as labor disputes rather than crimes, resulting in weak enforcement.

In a notice, the Senate said, “This draft establishes criminal rules to address shortcomings in the current legal framework,” adding that it “will help respond to social security and economic risks and contribute to restoring Cambodia’s reputation.” It also said the aim is to “improve the efficiency of responding to fraud through technological systems to protect public order.”