Vietnam needs a legal framework to manage cryptocurrency

The State Bank of Vietnam (SBV), the country’s central bank, and government agencies are working on a legal framework to manage cryptocurrency and virtual assets.

Vice Governor of the State Bank of Vietnam (SBV) Dao Minh Tu at the press conference. Photo: Nhat Bac

The information was released by Vice Governor of the SBV Dao Minh Tu at a monthly government’s press conference on March 2, saying that bitcoin and other cryptocurrency are not legal tender and lawful means of payment in Vietnam.

“Vietnamese laws do not allow such cryptocurrency to act as a kind of legal tender in Vietnam,” Tu said.

In another move, the Ministry of Finance has set up a research team on cryptocurrency and virtual assets to propose changes in laws related to these issues accordingly.

People face huge risks taking part in illegal forex trading

Tu, meanwhile, also reiterated the SBV’s stance regarding current operation of foreign exchange (FX) trading platforms in Vietnam that only credit institutions with permission from competent authorities are authorized to provide such services on the domestic and international markets.

“So far, local authorities have not issued license for any forex trading floor. Therefore, all transactions on these floors are illegal,” stressed Mr. Tu, urging investors to be cautious from advertisements of these platforms with promises of soaring profits despite current difficult economic climate.

People taking part in illegal forex activities, therefore, face huge risks and are not protected by law, added Tu.

Tu noted investors before putting their money on any investment channel should consult local authorities and credit institutions.

Some investors admitted greedy is a major reason for them to participate in forex trading activities. However, they argued a lack of legal framework regulating such activities has directly led to a growing number of such platforms operating publicly and attracting ill-informed investors.