Cambodia Senate Backs Harsh Penalties for Cryptocurrency Fraud Operations
Cambodia's Senate has given unanimous approval to proposed legislation aimed at scam operations, which now awaits royal endorsement to become law.
Legislation aimed at facilities utilized for defrauding individuals through various scam schemes, including cryptocurrency-related fraud, has been approved by Cambodia's legislative body.
According to a Friday announcement, the Kingdom of Cambodia's Senate revealed that lawmakers had given their unanimous support to the proposed legislation without any modifications, recording 58 affirmative votes from senators. Based on available information, the proposed legislation, which requires royal approval before it can be enacted into law, would impose imprisonment ranging from two to five years along with financial penalties reaching up to $125,000 for specified offenses, with sentences and fines doubling for those operating within criminal organizations or victimizing numerous individuals.
The draft law stipulates the establishment of criminal rules to fill the gaps and deficiencies in the current law, which will contribute significantly to addressing challenges that pose serious risks to social security, the economy and citizens, including affecting Cambodia's reputation, as well as improving the effectiveness of the fight against fraud through technological systems, aiming to contribute to the preservation and protection of public security and order, and improving the effectiveness of cooperation in combating this crime.
Friday Senate notice on the bill
A 2025 assessment published by the US State Department revealed that the Cambodian government has "frequently downplayed scam operation cases as labor disputes," with no documented arrests or legal proceedings against any individual owning or operating suspected fraudulent compounds. These Cambodian facilities represent merely a portion of numerous similar operations throughout Southeast Asian regions, where such compounds allegedly serve as locations for forced labor practices.
The legislative approval came after authorities in the United Kingdom imposed sanctions on individuals operating a scam facility based in Cambodia, and following the nation's extradition to China of a criminal organization leader allegedly connected to fraudulent compound operations. The national assembly of Cambodia moved the legislation forward on March 30, achieving unanimous approval with all 112 members casting affirmative votes.
What happens in these scam compounds?
A 2024 investigation by UN News that examined a facility located in the Philippines revealed that scam operations similar to those being addressed by the Cambodian legislation represented enormous operations, featuring infrastructure constructed to ensure residents would have no reason to depart. While numerous workers were tasked with executing the fraudulent schemes, they simultaneously were "trafficked here, held against their will" and "exposed to violence" within these facilities.
The people who work here are basically fenced off from the outside world. All their daily necessities are met. There are restaurants, dormitories, barbershops and even a karaoke bar. So, people don't actually have to leave and can stay here for months.
2024 UN News report