Cambodia backs tough jail terms for crypto scam operators

Cambodia has moved closer to tougher action against scam centers linked to crypto fraud and other online crimes. 

The country’s Senate approved a draft law that would impose prison terms and fines on people involved, marking a new step in its response to scam compounds.

Cambodia’s Senate said it unanimously approved the draft law on Friday, with all 58 senators voting in favor. The bill now awaits the king’s approval before it can take effect.

Reports said the proposed law would impose prison terms of two to five years and fines of up to $125,000 for certain offenses. Those penalties could double if the crimes involve a gang or affect several victims.

The Senate said the draft law would create criminal rules to address gaps in current legislation. It described the measure as part of a wider effort to respond to fraud carried out through technology systems.

In its notice, the Senate said the law would help tackle risks to social security, the economy, and public order. The notice added that the measure aimed to improve cooperation in the fight against fraud and protect Cambodia’s reputation. It said the draft law would help “fill the gaps and deficiencies in the current law” and improve efforts against fraud.

In addition, the bill moved forward after criticism from foreign governments and international bodies over scam activity in Southeast Asia. A 2025 report from the US State Department said Cambodia’s government had often treated scam cases as labor disputes and had not prosecuted owners or operators of suspected scam compounds.

The timing also followed action from the United Kingdom, which sanctioned operators of a Cambodia-based scam center. Cambodia also extradited to China the leader of a criminal syndicate with reported links to scam compounds. Before the Senate vote, the National Assembly approved the bill on March 30 with all 112 members voting in support.

Scam centers remain under scrutiny

Reports from the region have described scam compounds as closed sites where workers may face control, threats, and abuse. A 2024 UN report on a compound in the Philippines said some workers were trafficked, held against their will, and exposed to violence.

The report said many of these sites operate like self-contained facilities. It stated that the people inside are “basically fenced off from the outside world,” with access to restaurants, dormitories, and other services that reduce the need to leave. Cambodia’s proposed law now places fresh attention on how the country plans to address such operations.