Cambodia moves to jail crypto scam operators as pressure mounts
Cambodia’s Senate has unanimously approved a draft law that would impose prison sentences and heavy fines on people who run scam centers tied to crypto fraud and other online crimes, signaling a tougher stance after mounting international criticism. All 58 senators voted in favor on Friday; the bill now awaits the king’s signature to become law.
Under the proposed rules, offenders could face two to five years behind bars and fines up to $125,000. Penalties would be increased—potentially doubled—if crimes are committed by a gang or affect multiple victims. Lawmakers say the measure is designed to plug gaps in existing statutes and create clear criminal penalties for tech-enabled fraud.
The Senate framed the bill as part of a broader effort to protect social stability, the economy and public order, and to safeguard Cambodia’s international reputation. Officials also highlighted the need to improve domestic and cross-border cooperation in investigating and prosecuting fraud.
The move follows growing scrutiny from foreign governments and international organizations. A 2025 US State Department report criticized Cambodia for treating many scam cases as labor disputes rather than criminal matters, and for largely failing to prosecute owners or operators of suspected scam compounds. The timing also comes after UK sanctions targeting operators of a Cambodia-based scam center, and Cambodia’s extradition of a syndicate leader to China. The draft law was approved earlier by the National Assembly on March 30 with a unanimous 112-0 vote.
Reports from the region describe scam compounds as closed, self-contained sites where workers are often controlled, threatened or abused. A 2024 UN report on a compound in the Philippines documented cases of trafficking, people being held against their will, and exposure to violence, noting many such sites operate like “fenced off” communities with on-site services that minimize contact with the outside world.
If the king signs the bill, Cambodia will have new criminal tools specifically aimed at operators of scam compounds, a move likely to affect both the local ecosystem that hosts these schemes and international efforts to curb crypto-related fraud. Observers will be watching how the law is implemented and whether it leads to prosecutions of owners and organizers rather than treating incidents as civil or labor issues.
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