First Crypto Exchange Given Green Light In Vietnam

In southeast Asia is Vietnam which is about to get its first licensed crypto exchange, thanks to “Memorandum of Understanding between the Link Thanh Group, the nation’s largest distribution group, and KRONN Ventures AG, a blockchain company from Switzerland’s “crypto valley” Zug.”

According to KRONN’s press release, it spoke of its intentions in the Southeast Asian market:

“In October 2018, KRONN Ventures AG formed a consortium with financial committees of five Asian developing countries including Vietnam, Philippines, Cambodia, Bangladesh, and Sri Lanka to build an international wiring system using blockchain technology that fits with the Asian environment. Since Vietnam and its Linh Thanh Group became the first place for this deal, the other countries in the consortium are growing concerned that they will be deprived of the opportunity to kickstart the Asia-wide transnational wiring system using blockchain.”

The group’s press release has stated that it is expecting the development to spread to other countries and the impact felt in Vietnam will be felt in surrounding regions.

KRONN says that it has the license to operate however lawmakers in Vietnam have banned crypto related activities and are still deliberating on how to approach crypto in the long run.

The press release also said, “the industry expectation is that by combining Linh Thanh Group's massive distribution network, which is the largest in Vietnam, with the world-class technology of KRONN Ventures, the impact will be widely felt not only in Vietnam but also in other surrounding Asian countries.”

Vietnam has had a rough history in terms of cryptocurrency. Last year, the nation was subject to one of the biggest cryptocurrency scam ever when a company took $658 million from investors in a fraudulent ICO (similar to a Ponzi scheme). The news has caused an outrage in Vietnam with the Deputy Prime Minister Vuong Dinh Hue has demanded that it be looked into.

The exit scam has resulted in the public calling for sturdier regulations which are not only just generally improved but that they are also able to protect investors from market risks and the approval of exchange (if it is officially announced) means that the authorities are aware that there is a bit of potential in the crypto space and are open to taking steps forward for the future.