Multi-asset brokerage Blackwell Global has opened a new subsidiary in Cambodia. The company has opened a new office and gained a derivatives broker license from the Securities and Exchange Commission of Cambodia (SECC), permitting it to operate in the country.
The Cambodian subsidiary of Blackwell Global will be based out of the capital Phnom Penh. This expansion of the brokerage’s services is part of its broader push into the Asian market.
Blackwell Global gains access to a market that has over 15 million residents. Moreover the potential of the market is enormous with over 50 percent of the population in the country aged below 25 years.
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Cambodian Derivatives Dealing License
According to the SECC website, there are a total of 10 brokers holding a derivatives license. Only some of those are focused on providing retail forex and CFDs trading to their clients. Blackwell Global appears to be joining a list of local and Japanese companies that have ventured into the market. Back in February, Golden FX Link became the first regulated derivatives provider to retail clients.
Commenting on the news, the Managing Director of Blackwell Global Cambodia, Avis Wang, said: “The general population in Cambodia has experienced an increase in affluence, and there are incrementally more demands for sophisticated standards which Blackwell Global is able to deliver, both in technology and education. With access to the latest technology and services on the B2B front, this translates to better trading conditions for our clients.”
The announcement adds to the vast globalized portfolio of regulatory licenses of the company that includes the FCA in the UK, CySEC in Cyprus, the FSP in New Zealand and the SFC in Hong Kong.
Cambodia is putting itself on the map of regulatory jurisdictions in a region where the market is poised to continue growing. The main hurdle for the market is the emergence of numerous unlicensed operators that are targeting clients without any limitations.
The potential of the Cambodian market has been limited by the lack of an appropriate regulatory framework that ensures transparency of operations. With its new effort to regulate the industry, the SECC is looking to reign in illicit operators and open the market to more reputable providers.