Cambodian lawmakers propose severe prison time for crypto scammers
04.04.2026
19316
Cambodia's parliament passed legislation targeting compounds used to defraud victims through scams, including those involving cryptocurrency.
Cambodia just dropped the hammer on crypto scammers — and the penalties are brutal.
The Senate unanimously passed a draft law on Friday (58-0) that could lock up fraudsters for 2-5 years + slap them with fines up to $125K. If they're running with a gang or targeting multiple victims? Double the time and penalties. This is a major policy shift for a government that's historically downplayed these operations as 'labor disputes.'
The bill still needs King Norodom Sihamoni's signature, but it's a clear response to international pressure. The UK recently sanctioned a Cambodia-based scam center, and China just extradited a syndicate leader tied to these compounds.
According to the Senate notice, this law 'fills gaps in current legislation' to tackle crimes that 'pose serious risks to social security, the economy, and Cambodia's reputation.' Translation: They're finally taking this seriously after years of looking the other way.
What exactly happens in these scam compounds?
These aren't just random Telegram groups — we're talking full-blown compounds with restaurants, dormitories, barbershops, even karaoke bars. Workers (many trafficked and held against their will) run crypto and other scams 24/7 without ever leaving the facility.
A 2024 UN report described them as 'fenced off from the outside world' where people 'can stay here for months.' The U.S. State Department's 2025 trafficking report noted Cambodia had never prosecuted any compound owner or operator — until now.
This crackdown follows similar moves across Southeast Asia where scam centers have become industrialized crime operations. Cambodia's National Assembly already approved the bill on March 30 (112-0), showing rare political unity on crypto crime.
- • 2-5 years prison time for individual scammers
- • Up to $125,000 in fines
- • Double penalties for gang operations or multiple victims
- • Targets 'fraud through technological systems' including crypto
- • Unanimous Senate approval (58-0) on April 3, 2026
- • Still requires king's approval to become law
#FATF#legislation#Cambodia#crypto fraud#regulation
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