Cambodian blockchain firm WnK System Co Ltd is seeking entry into the FinTech Regulatory Sandbox in the securities sector. The Securities and Exchange Regulator of Cambodia (SERC) conducted an on-site inspection of the company on October 2 to assess their facilities and the establishment of its digital asset trading system.
The “Sandbox” is a mechanism that permits financial institutions and FinTech companies to trial new financial offerings or services in a live environment, but confined to certain limits and timeframes.
SERC director-general Sou Socheat told The Post on October 3 that the evaluation of WnK’s application is ongoing. He mentioned plans for a further meeting with the Non-Bank Financial Services Authority (NBFSA) to gather insights and approval.
“So far, we haven’t made any decisions. We need approval from Minister of Economy and Finance Aun Pornmoniroth, who is also chairman of the NBFSA. Once received, our team will decide on the company’s application,” he said.
The government issued a prakas on the FinTech Regulatory Sandbox in the Securities Sector in August.
According to data from SERC, since the inception of the capital market, 20 companies have been listed on the Cambodia Securities Exchange (CSX). This consists of 11 equity security issuers – with nine listed on the main board for large enterprises and two on the growth board for SMEs – and nine corporate bond issuers. Among them, Golden Tree Co Ltd made headlines by issuing Cambodia’s first green bonds compliant with the ASEAN Green Bond Standard.
These 20 companies have raised $328 million and hold a combined market capitalisation of $3.08 billion, equating to 10.64 per cent of Cambodia’s GDP, as of August 30.
Additionally, SERC has licensed or accredited around 130 companies in the securities sector, encompassing securities firms, derivative businesses and collective investment schemes. Socheat highlighted that three primary products – equity, debt (including green bonds) and derivatives – are currently traded in the market.
“We’re gearing up to trade funds soon as the infrastructure is prepared. The recent adoption of the prakas on the Issuance of Fund Units of Collective Investment Scheme is another milestone for our market,” he said.