Vietnam’s Ministry of Finance warns against trading

Vietnam’s Ministry of Finance warns against trading in cryptocurrencies

The ministry stresses that there is still no legal framework for the crypto industry.

The Vietnamese government is warning the domestic population against trading in cryptocurrencies as it is not yet regulated by state authorities.

As reported by the Vietnamese news agency Thanh Nien on Wednesday, the country’s Ministry of Finance Bitcoin Up announced in this context that „Vietnam has not yet passed any laws concerning the issuance, trading and exchange of virtual currencies“.

Moreover, digital currencies would not fall under Vietnam’s securities law. In any case, trading of securities is only allowed via the two authorised stock exchanges Ho Chi Minh Stock Exchange and Hanoi Stock Exchange.

However, the Ministry of Finance now wants to take care of this „legal loophole“ by setting up a working group to study the mechanisms of action of the crypto industry and develop appropriate crypto-regulation. The ministry first wants to raise awareness of the issue in order to protect the domestic population from the risks associated with trading and investing in cryptocurrencies.

In particular, the danger of fraudulent crypto projects is to be emphasised

The latest warning comes against the backdrop of a new controversial crypto project called Pi Network, which is currently gaining popularity, especially in Southeast Asia. Observers suspect that it could be a fraudulent pyramid scheme. As a blockchain expert from the Hanoi University of Technology told Vietnamese media, the Pi Network is far less transparent than legitimate blockchain networks.

Cointelegraph had reported in the past that the Vietnamese government is critical of cryptocurrencies anyway, although it is in turn supportive of blockchain technology. After cryptocurrencies were already banned as a means of payment in 2018, the authorities periodically warn against crypto.