According to the regional Vietnam publication VNEconomy, the country’s authorities and financial ministries will be regulating virtual currencies in the near future.
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Vietnam Prepares to Regulate Virtual Currencies
The report details the use of cryptocurrencies such as bitcoin is becoming widely used worldwide. However, within this emerging economy regulators see risks of money laundering, tax evasion, and other criminal activities. According to the source, virtual currencies also offer many positives such as cost savings and immutability. While realizing the positives and negative attributes of virtual currencies, the government believes it should prepare regulations before further issues come to fruition.
“Improving the legal framework to manage and deal with all kinds of virtual property, and electronic money,” a source explained to the publication.
Additionally, officials recognize that many other nations have started to impose regulatory frameworks worldwide. Currently, there are existing provisions in Vietnam such as the Anti-Money Laundering Act. However, when it comes to legal guidelines for virtual currency, the country has no formal regulations. According to the VNEconomy report, officials say “research is needed to clarify understanding” when it comes to the digital economy.
Vietnam Officials Have Previously Issued Warnings Concerning Bitcoin
This past October, Bloomberg BNA reported on a significantly sized pyramid scheme which may have sparked the prospect of regulations. The owners of the website Gold889.com did not use bitcoin in their pyramid operations — but despite this, officials noted that many MLM or pyramid schemes did involve the use of cryptocurrency. Nguyen Thi Thu Hang, head of Vietnam’s Ministry of Public Security’s high-tech crime prevention office, stated she has seen these businesses increasing. In particular, Hang warned of two operations called Airbitclub, and Bitkingdom which promise returns of 80 percent annually.
“What these platforms have in common is they receive money through bitcoin, operate under a multi-level model, and take money from a later person to pay an earlier person,” Hang detailed in an interview.
Additionally, back in March, the Vietnam e-Commerce and Information Technology Agency issued warnings about the storing of bitcoins. The report explained that some cryptocurrency exchanges have folded and investors have lost money. Furthermore, the report delves into the regulatory policies taking place within other nations.
Surely Bitcoin businesses within the region hope the government doesn’t stifle innovation with strict regulatory policy. Dominik Weil, co-founder of Bitcoin Vietnam told Bloomberg BNA that he’s been discussing regulatory rules with the State Bank. With the latest report from the regional VNEconomy publication, it seems regulators will be drafting proposals soon.
What do you think about Vietnam regulating Bitcoin? Let us know in the comments below.
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