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We propose an optical color image cryptosystem based on position multiplexing technique and phase truncation operation. Compared with the reported color image encryption method, we employ the position multiplexing technique to encrypt the color image in only one spatial channel. Meanwhile, our proposed method can maintain the nonlinear characteristic of the cryptosystem and avoid various types of the currently existing attacks, especially the iterative attack. Simulation results are presented to demonstrate the security and robustness performance of the proposed method.