Cambodia is moving toward a comprehensive legal framework for virtual and digital assets, with the government targeting completion of enactment ready legislation by December 2026. The Securities and Exchange Regulator of Cambodia, SERC, said the drafting process is progressing under technical assistance from the Asian Development Bank, with UK based consultancy D2 Legal Technology leading the technical work.
The initiative is intended to bring Cambodia’s virtual asset framework closer to international regulatory standards while establishing clearer responsibilities for authorities, stronger anti money laundering and counter terrorist financing safeguards, and effective enforcement mechanisms. A full draft is expected by late September, followed by further development and consultations before the legislation is completed in December.
“Cambodia is moving toward a comprehensive legal framework for virtual and digital assets, targeting enactment ready legislation by December 2026. Supported by the Asian Development Bank and technical expertise from D2 Legal Technology, the drafting process will focus on regulatory responsibilities, anti money laundering and counter terrorist financing requirements, and enforcement. The framework is also being aligned with international standards, including Financial Action Task Force recommendations and International Organization of Securities Commissions principles. For businesses, investors and financial institutions, the proposed law could provide greater clarity around the rapidly developing virtual asset sector while establishing stronger safeguards against financial crime. The December target signals Cambodia’s intention to develop a more structured regulatory environment as digital assets become an increasingly important part of the global financial landscape.”
Cambodia Moves Toward a Comprehensive Virtual Asset Framework
The Securities and Exchange Regulator of Cambodia confirmed that D2 Legal Technology has submitted a detailed work plan for drafting the Law on the Management of Virtual Assets/Digital Assets. The consultancy was engaged through Asian Development Bank technical assistance, with the work following an August 10 meeting of the Inter Ministerial Working Group responsible for overseeing the drafting process.
The project runs from May through December and is designed to establish a modern regulatory framework for Cambodia’s growing virtual asset sector. Rather than relying only on individual regulations, the proposed legislation is intended to provide a broader legal foundation covering regulatory authority, financial crime controls and enforcement.
Draft Law Will Follow International Standards
A central objective of the project is to align Cambodia’s virtual asset framework with international standards, including recommendations from the Financial Action Task Force and principles developed by the International Organization of Securities Commissions.
The full draft law is expected by late September and will be structured around three main pillars: competent authorities, anti money laundering and counter terrorist financing, and enforcement. These areas correspond directly with key FATF requirements for virtual assets and virtual asset service providers, including Recommendation 15 on regulation and Recommendation 16, commonly known as the Travel Rule.
The proposed structure is significant for businesses because regulatory clarity can help define who is responsible for oversight and what obligations companies operating in the sector will need to meet. It also provides a foundation for stronger controls designed to reduce the risk of virtual assets being misused for financial crime.
Regulations Will Build on the Main Legal Framework
The drafting process will also include skeleton provisions covering other areas of the framework. These provisions are expected to provide the foundation for subsequent regulations, allowing more detailed requirements to be developed after the main legislation is established.
Completion of the drafting process is scheduled for November, followed by finalisation in December. The timeline reflects an effort to move from technical drafting toward a complete legal framework within the year, although the final legislation will depend on the remaining consultation, review and approval processes.
For companies and investors watching Cambodia’s digital economy, the development is particularly relevant because a clearly defined legal environment can help reduce uncertainty surrounding virtual asset activities. It may also establish clearer expectations for businesses seeking to operate within the regulated financial and technology sectors.
Stakeholders to Be Consulted Throughout the Process
Stakeholder consultation is expected to form part of the drafting process. On September 7, SERC Director General Sou Socheat chaired a virtual meeting with ADB specialist Ahmad Faris Rabidin to review the work plan, while the Asian Development Bank reaffirmed its support for the initiative.
The involvement of technical specialists and stakeholders is intended to help ensure that the proposed framework reflects both international standards and Cambodia’s regulatory needs. This is particularly important for virtual assets, where technology and business models can develop faster than traditional regulatory systems.
D2 Legal Technology’s lead expert, Dr. Jason de Mink, brings more than 25 years of experience in digital assets, fintech regulation and financial crime compliance. His experience adds specialist knowledge to a drafting process that requires an understanding of both emerging financial technologies and the risks associated with them.
Stronger Rules Could Bring Greater Market Clarity
Officials said the new law will establish clear regulatory responsibilities, AML/CFT obligations and enforcement mechanisms. These elements are expected to provide Cambodia with a more structured approach to managing the virtual asset sector.
For businesses, a clear framework can provide greater certainty around regulatory responsibilities and compliance requirements. For financial institutions and investors, stronger AML/CFT controls may also help create a more transparent environment for assessing potential virtual asset activities.
The proposed legislation therefore goes beyond regulating a new category of financial technology. It represents an effort to establish safeguards while creating a formal legal structure for an industry that continues to develop rapidly around the world.
Cambodia’s Digital Asset Sector Enters a New Regulatory Phase
Cambodia’s target of completing the virtual and digital asset law by December marks an important step toward formalising the country’s approach to digital finance. With support from the ADB, technical expertise from D2 Legal Technology and alignment with FATF and IOSCO principles, the drafting process is designed to balance innovation with financial crime prevention and regulatory oversight.
The coming months will be important as the draft moves through consultation, further development and finalisation. If the December target is achieved, Cambodia will have a more comprehensive foundation for managing virtual assets and the businesses operating around them. For investors, entrepreneurs and financial technology companies, the key development to watch will be whether the new framework provides the regulatory clarity and confidence needed for responsible growth.