The future of crypto in Vietnam has been very uncertain of late. In fact, through 2018 all together, the country has remained very much on the fence about the future of crypto, including blockchain technology, currencies and projects that involve ICOs.
Vietnam could have gone one of three ways, banning, regulation or indeed adoption. We now know that the latter is no longer possible given that authorities in Vietnam have decided to go for an outright ban.
According to reports, State Securities Commission of Vietnam (SSC) has ruled against any company issuing, transacting or brokering any digital or cryptocurrencies.
This comes after the State Bank of Vietnam ceased their support of cryptocurrency mining equipment. As it stands now, mining is not illegal in Vietnam, but the actual transacting of cryptocurrency is set to be.
According to BTCManager:
“The country’s State Securities Commission has issued a ban for securities companies, public companies, securities investment funds, and fund management companies, forbidding them from dealing in any way with crypto assets. As an explanation, the commission cites worries of money laundering and other risks.”
See the full post for yourself, here.
This idea of money laundering is an ongoing problem, one that is turning governments and authorities against cryptocurrencies, something that is no doubt going to prove problematic for the industry in the future.
Of course, people in Vietnam will still find ways to trade crypto, but in doing so they may be putting themselves at risk of exposure to legal sanctions.
An official statement has been made by Xinhuanet.com, a Vietnamese News outlet in which they have stated:
“The commission has banned public companies, securities companies, fund management companies and securities investment funds from taking part in the activities, and required them to obey legal regulations on anti-money laundering, Vietnam News Agency reported Thursday. The ban is based on a prime ministerial directive dated earlier this year on strengthening the management of activities related to Bitcoin and other cryptocurrencies. The use of such currencies as a means of payment is prohibited in Vietnam.”
See the full announcement for yourself, here.
It is unfortunate that the SSC have made this decision but overall, it was expected. Vietnam are set to take the same route as India now, prohibiting cryptocurrency and preventing any potential future growth within the country. Of course, this may be overturned in the future and to be honest, once security is tightened up and the industry cleans up its act a bit, we can expect the SSC to reconsider their position.
This is bad news for now, but let’s not dwell on it forever, things could change in the future.