PM orders tighter control of Bitcoin, cryptocurrency

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The State Bank of Vietnam (SVB), financial institutions, and other organisations providing payment brokerage services must intensify inspections and promptly report suspicious cryptocurrency transactions.   (Photo: unbox.ph)

The Prime Minister has just signed Directive No.10/CT-TTg on the matter, following repeated warnings from relevant agencies on risks associated with Bitcoin and other cryptocurrencies, along with the threat that cryptocurrencies can be used to finance crimes such as money laundering, terrorism, tax evasion and fraud. 

At the same time, cryptocurrency trading and investment is on the rise, posing a threat to the stability of the financial market and social order and safety due to the high risk involved.

The PM instructed the Ministry of Public Security to join hands with the SBV and relevant ministries to detect and handle any case of using cryptocurrency for illegal payment or any activities connected to money laundering and terrorism sponsor activities via cryptocurrency.

Meanwhile, the Ministry of Finance is requested to study global experience to recommend solutions to counter initial coin offering (ICO). In addition, the ministry should work to reduce the import of Bitcoin mining machines.

The Ministry of Industry and Trade must channel efforts into addressing illegal activities relating to the illegal use of Bitcoin to make payment on e-commerce websites or applications.

The Ministry of Justice is responsible for completing a legal framework on the management and settlement of cryptocurrency or crypto assets.

The media are urged to do their part in raising public awareness on the risks and negative consequences of cryptocurrency investment and trading.

Cryptocurrency is considered an illegal non-cash payment method in Vietnam. The use of virtual money as a means of payment is prohibited and will be handled according to the country’s legal regulations.

The police in Ho Chi Minh City are coordinating with relevant agencies to investigate an alleged cryptocurrency fraud involving over 32,000 people and a sum of VND15 trillion (US$666 million).