An empty scam compound does not mean the criminal network is gone. Cambodia’s central bank chief has acknowledged that the country should have regulated cryptocurrency, as fraud operations harm its reputation and spread beyond its borders.
On November 13, National Bank of Cambodia Governor Chea Serey said the country’s earlier decision not to regulate cryptocurrency or allow public trading had enabled bad actors to exploit the sector. Cryptocurrency has been used to move funds across borders and launder proceeds from online investment and romance scams. Authorities now aim to pass a virtual-assets law by the end of 2026.
How Crypto Escaped Oversight
Serey said Cambodia’s approach to cryptocurrency had harmed its reputation. But without clear oversight, authorities had fewer tools to monitor virtual-asset activity and identify suspicious transactions. The governor did not provide details of the proposed law, so its scope remains uncertain. Officials are now under pressure to show that the rules will be enforced.
Follow us on X for real-time crypto updates.
Why Raids Missed the Networks
Meanwhile, reports indicate that closing compounds has not eliminated the people and systems behind the fraud. Cambodia began a year-long crackdown in July 2025. In August 2026, officials claimed that no online scam compounds remained. Yet recruitment ads linked to Cambodia appeared on Telegram in late October.
Cambodian analyst Moses Ngeth reviewed 4,991 scam-related job ads posted between 2023 and 2026. The advertised roles included finding online contacts for romance scams, managing teams, and handling money. Mina Chiang, founder of Humanity Research Consultancy, said experienced workers and managers were looking for new employers, helping criminal groups relocate.
Criminal networks have also crossed borders. In October, Vietnamese police charged 88 foreign nationals and one Vietnamese citizen in connection with a cross-border scam operation. Investigators said the group rented a hotel in June and brought equipment and data from Cambodia. Authorities estimated that the operation had taken nearly $2 million from victims.
The Cost Beyond the Compounds
Raids have also left some people trafficked into scam compounds stranded, without money or legal support to return home. Researchers warned that criminal bosses could recruit them again, while experienced workers and managers may relocate, taking their skills and contacts with them.
This raises the risk that crackdowns will displace criminal networks rather than dismantle them. Even when compounds close, recruiters, financial facilitators, and senior organizers can keep operating from smaller sites or across borders.
Cambodia is also paying an economic price. Serey said tourists from neighboring countries were staying away partly because of the country’s reputation for scams. Tourism ministry figures showed arrivals fell 44% year on year to 2.46 million in the first nine months of 2026. The border conflict with Thailand also affected travel.
A virtual-assets law could improve oversight, but regulation alone will not dismantle transnational fraud networks. Authorities need to trace illicit proceeds, target organizers, protect trafficked workers, and coordinate across borders. Cambodia’s challenge is no longer just to close scam compounds, but to stop criminal infrastructure from reopening elsewhere.
Subscribe to our YouTube channel for the latest crypto news.
Related: SBI and Cambodia Launch Blockchain Pilots for Government Bonds and Yen Stablecoin Payments