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Business & Finance

Vietnamese Government Places Caution Signs Against All Crypto-Based Activities

The government and the associated regulatory bodies have suggested to all the major, industries, companies and funds across the country to halt all the activities related to cryptocurrencies.

Over the past year, the intent of Vietnam’s government towards the usage of cryptocurrency resources on the industrial scale has largely been negative. According to the news report by a local Vietnamese source, Viet Nam News, it has been strongly ordered by the State Securities Commission (SSC) that all the major industries and companies across the country should immediately cut down their dealings in cryptocurrencies, as the framework associated with it is too naive at the moment, and is vulnerable to threats like money laundering. All the firms are warned to stop all their crypto-based activities and processes that involve issuance, trading or brokerage of cryptocurrencies across the country.

This pattern of culminating the usage of cryptocurrency on the industral and commercial level has been a signature of the Vietnam government from from the get go. It is clearly evident from the ban, that the central bank of the country, the State Bank of Vietnam, placed on the cryptocurrency transactions made by the commercial banks and payment service providers across the country. This decision came in the hindsight of all the possible illegal activities that might be happening across the cryptocurrency network in the form of terrorism financing, tax evasion, stealing etc.

In the past, we have also seen the Vietnam government place a ban on the payments made through the channel of cryptocurrency last year. Bitcoin has been termed as “not a legal method of payment in the country”.  As stated by the central bank of the country:

As from January 1, 2018, the act of issuing, providing and using illegal means of payment (including bitcoin and other similar virtual currency) may be subject to prosecution.

Vietnam government has also banned the payment of university tuition through the means of cryptocurrency by the students. The use of bitcoin as a legal payment method is not endorsed by the government of Vietnam, and any actions to treat it this way might subject the respective university to an appropriate penalty.

Going further into the dislike shown by the Vietnam government towards the usage of cryptocurrency platform, previously, it had also banned the import of devices used by all the cryptocurrency miners across the country, although it was temporary. This ban was implemented as a result of the orders from Vietnam’s Ministry of Industry and Trade (MoIT). The ban to be placed on the import of mining devices was originally proposed by the MoIT back in June, 2018, but since there is no official violation standard imposed upon the cryptocurrency miners, the ability of the local authorities to control the situation and enforce restrictions fell short.

However, a certain shift towards putting the cryptocurrency resouces for good use has also been observed from the Vietnamese government side, including the possible hint at legalization of bitcoin on the national scale by the Prime Minister, but largely, its inclination has majorly been towards reducing use of cryptocurrency channels on the commercial and industrial scale.

All in all, despite showing the signs of being a country with changing perception regarding the usage of cryptocurrency, Vietnam is still a place with a lot of chains tied to the hands of cryptomarket traders, with more negative signs in sight than the positive ones.

Ahsan Khalid

Blockchain Developer. An Electrical Engineer with majors in software development. I present forward my insight regarding the latest happenings of the blockchain world. All views on my articles are my own. Email: ahsan@blockpublisher.com or editor.news@blockpublisher.com

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