Vietnam Report Stimulates State Action On Crypto Control
A fresh report in Vietnam on the subject of present crypto regulation has suggested modifications to the legislation. The rational appears to be that the country must meet the needs of all participants in the industry.
Hanoi’s Department of Justice was responsible for the compilation of the report. As a result, it brought Vietnamese regulations on cryptocurrencies in line with other nations overseas. The crypto business is well established in many other foreign nations.
Many Problems Faced by Vietnam’s Crypto Industry
Vietnam previously experienced several challenges while handling cryptocurrency transactions. Similar problems were also witnessed in the country when the nation was trying to first adopt BTC use. Some of these growing pains included infamous swindles and Ponzi schemes which occurred in the preceding years.
This resulted in tremendous losses and inquiries into ICO’s by state authorities. Crypto is not presently accepted and banks are warning the public to avoid its use. It therefore, means that people cannot effectively use it to execute transactions.
Reuters said that it saw a duplicate of Vietnam’s Prime Minister Command instructing the central bank to stop all monetary services relating to crypto transactions. The directive further included measures aimed at curbing money laundering and other serious criminal offences like terrorism. It is because some of the perpetrators of these crimes use digital money to carry out their undertakings. The government has on several occasions indicated that it will develop a legal framework for crypto. However, the announcement is not new since a similar one was made last year after an inquiry into scam ICO’s was conducted in April 2018.
The Vietnamese government intends to do research on successful strategies that have worked in other nations before developing its own guidelines for cryptocurrencies. The measure will lead to the development of a flexible monitoring system. Furthermore, it will ensure that the market operates within certain regulations to prevent fraud in the industry.
Nguyen Tu emphasized that there are several factors to consider before legalizing crypto. The benefits of investing in this sector must outweigh the costs involved. As a result of due diligence, customers can reap maximum benefits from the trade. Additionally, risk is another essential factor that should be considered. A business environment free from fraud will help in safeguarding the shareholders from losing their hard earned money.
Few People Use Crypto In Vietnam
Investigations reveal that the use of crypto is still unpopular in Vietnam. Government statistics indicate that only 1% of the entire population uses the virtual currency to trade. Therefore, there is a need to balance the more than fifteen thousand imported machines in the nation last year.
The Prime Minister has now obligated relevant state authorities to prepare regulations for the nation’s initial legal cryptocurrency framework. Market participants are now waiting to see when this type of trade will be fully operational in the country.