In Vietnam, bitcoin regulation is quite tough. The crypto community has little chance of being heard by the authorities. BTC has been banned as a means of payment since January 2018. The country’s government said the crypto asset is money laundering, terrorist financing, and tax evasion. The fine for violating these rules is from 150 to 200 million Vietnamese dong (at the time of this writing, about $ 9 thousand)—the ban concerned business.
The issuance, offer, use of bitcoin and other similar virtual currencies as means of payment in Vietnam is prohibited.
Central Bank of Vietnam
The July 2018 ban restricted certain cryptocurrency-related activities, but citizens could still legally buy and own BTC in Vietnam. In July 2018, the country also introduced a restriction on the import of equipment for mining cryptocurrency. Mining itself is not prohibited in Vietnam.
In 2019, the government allowed a select few cryptocurrency companies to operate in Vietnam. For example, Linh Thanh Group (Vietnam) and Kronn Ventures (Switzerland) were licensed to launch the first regulated cryptocurrency exchange in the country which conducted BTC to VND trading.
Perhaps we will see a softening of relations in the coming years or even months since the “prohibitive” position is only a partial ban on digital currencies, which only applies to their use as payment instruments. The situation is changing.
Future Predictions for Cryptocurrency Regulation in Vietnam
The cryptocurrency is based on blockchain and distributed ledger technology that replicates as it grows and is very difficult, if not impossible, to erase or tamper with existing records. This technology is not banned in Vietnam. This is one of the proposed regulatory sandbox entities that are under consideration by the government. Future regulation of crypto assets in Vietnam will allow blockchain technology developers to work with government regulators to demonstrate that their activities comply with laws and amend existing laws or develop new laws to regulate technologies being developed. However, the sandbox has yet to be approved.
However, other laws will be required to regulate the possibility that cryptocurrencies may fall under the definition of financial instruments. Other countries in the region have allowed cryptocurrency and have developed legal guidelines for its use. Malaysia, Singapore, Indonesia, and the Philippines all accept and regulate cryptocurrencies. But it’s not just Vietnam that bans cryptocurrency. Thailand, Laos, Myanmar, and Cambodia also still do not allow their use. However, many of these countries have small economies and limited public resources, making it challenging to create the regulatory bodies needed to introduce a new form of currency.
Suppose Vietnam promotes the creation of new technologies and not just the production of foreign technological goods. In that case, the growth rate of the information and communication sector will exceed the growth rate of the country’s GDP by two to four times.
Conclusion
In 2017, the government tried to develop legislation to regulate both cryptocurrencies in Vietnam and electronic money. But in 2018, fraudulent activities were committed that led to a ban on the use of cryptocurrencies in the country. Since then, it has not been possible to register a cryptocurrency campaign in Vietnam since cryptocurrencies are prohibited, including ETH to VND trades. Whether the government decides to continue the ban on cryptocurrency or lift the ban and pass legislation to regulate it, this will significantly impact Vietnam’s ability to adapt to future payment methods and remain an essential center in the global economy. To get more information, you can take the opportunity to order a consultation on the regulation of cryptocurrencies in Vietnam with our specialized specialists.
