Cambodia’s parliament has approved legislation aimed at shutting down compounds used to carry out frauds, including those tied to cryptocurrency schemes.
On Friday the Senate announced it had unanimously passed the draft law with 58 votes in favor and no amendments. The bill must still receive the king’s assent to become law. Reported penalties include prison terms of two to five years and fines up to $125,000 for certain offenses, with both prison terms and fines doubled when crimes are committed by gangs or involve multiple victims.
A translated Senate statement said the draft law creates criminal provisions to address gaps in existing legislation, strengthen responses to threats to social security and the economy, protect citizens and Cambodia’s reputation, and improve cooperation and effectiveness in combating fraud conducted through technological systems.
A 2025 U.S. State Department report said Cambodia’s authorities had often characterized scam-operation cases as labor disputes and had not arrested or prosecuted owners or operators of suspected scam compounds. Such compounds appear across parts of Southeast Asia and have been linked to forced labor in international reporting.
The bill’s passage follows recent international actions: UK authorities sanctioned operators of a Cambodia-based scam center, and Cambodian officials extradited to China an alleged leader of a syndicate tied to scam compounds. Cambodia’s National Assembly advanced the draft on March 30 with all 112 members voting in favor.
Scam compounds, as described in UN reporting from 2024, are large, self-contained facilities constructed so residents rarely need to leave. Workers who run the scams are often trafficked into the compounds, held against their will and exposed to violence. Daily life is arranged inside the compounds—restaurants, dormitories, barbershops and even karaoke—so people can be kept there for months with minimal contact with the outside world. Cointelegraph reports its journalism follows an editorial policy and encourages readers to verify information independently.
