Vietnam’s securities watchdog has required local businesses not to engage in transactions with cryptocurrencies. The announcement follows a directive issued by the country’s prime minister earlier this year aimed at tightening what Vietnamese regulators call the management of crypto activities.
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Securities Watchdog Asks Companies to Obey AML Rules
The State Securities Commission of Vietnam (SSC) has required relevant companies and funds not to engage in any issuance, transaction or brokerage activities related to cryptocurrencies. The measure, referred to by local media as a ban, affects public companies, securities companies, fund management firms and securities investment funds. They have also been asked to obey anti-money laundering (AML) regulations.
According to the SSC, the announcement is based on Directive No 10/CT-TTg signed on April 11 by Vietnam’s Prime Minister, Nguyen Xuan Phuc, Viet Nam News reported. The document puts an emphasis on strengthening the management of activities related to bitcoin and other cryptocurrencies. The outlet also notes that the use of digital currencies is prohibited in Vietnam.
Not the First Anti-Crypto Measure
This is not the first administrative measure aimed at curbing crypto activities in the country. In April, the State Bank of Vietnam (SBV) banned commercial banks, payment services providers and intermediaries from making transactions involving cryptocurrencies. The central bank also issued a warning stating that such activities may increase the risks of money laundering, terrorism financing, trade fraud and tax evasion.
Last October, the SBV declared that cryptos do not represent a “lawful means of payment” in the Asian country. Its proposals in that respect, which were submitted to the government in Hanoi, included a ban on the issuance, distribution, and use of cryptocurrencies as well as criminal prosecution and fines for their users.
Recently, citing the familiar argument – the need to improve the management of cryptocurrencies in Vietnam – the Ministry of Finance, the Ministry of Industry and Trade, and the SBV reached an agreement to suspend the import of crypto mining equipment. The proposal came from the Finance Ministry in June, as news.Bitcoin.com reported.
Fraud and Scam in Vietnam
In the past couple of years, the Vietnamese mining sector has been growing rapidly leading to a significant increase in the number of imported mining rigs. Digital coin minting, however, has caused concern in Hanoi. In May, close to 150 Vietnamese government agencies, financial institutions and businesses took part in a large cyber-security drill aimed at preventing the spread of mining malware.
Crypto-related fraud has played a role in shaping the current attitude of Vietnamese authorities and regulators towards the crypto space. The country recently had to deal with one of the largest scams in crypto history in which more than 30,000 people were defrauded into investing in the Ifan and Pincoin currencies.
What are your expectations for the future of cryptocurrencies in Vietnam? Share your thoughts in the comments section below.
Images courtesy of Shutterstock and the SSC.
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