The Vietnamese Ministry of Finance is undertaking a thorough investigation into cryptocurrencies for regulatory purposes.
Vietnam is attempting to control the cryptocurrency industry, and the government has recently commissioned a study group to do so. The Vietnamese Ministry of Finance is undertaking a thorough investigation into cryptocurrencies for regulatory purposes. According to ASEAN Briefing, the Vietnamese finance ministry wants to collect enough data to see how the country’s regulatory process can be made. According to the announcement, the study comes when cryptocurrencies are gaining attention across the world.
One million Vietnamese people use cryptocurrencies
The government estimates that one million Vietnamese people are now using cryptocurrencies, and the government expects a 30-fold rise by the end of this decade. In addition, cashless payment methods such as QR codes, e-wallets, and mobile apps are becoming more common in Vietnam. The Vietnamese government’s drive fueled such technology adoption through the prime minister since 2017, who predicted that cash transactions would be reduced by 90 percent by 2020. The research will concentrate on the following subjects, emphasizing current legal systems in the United States, Japan, and Europe.
Crypto scams are also on the rise in Vietnam
The government’s desire to control the cryptocurrency ecosystem coincides with the government’s concerns about crypto-related crimes, such as cyber hacks and scams. The announcement cites the case of Modern Tech, a domestic startup that defrauded thousands of Vietnamese investors out of $660 million via bogus initial coin offerings (ICOs). As a result, Vietnam’s current challenge is to introduce a legal device to control and handle virtual properties. It will also limit abusive cryptocurrency transactions, which is the government’s primary concern.
Currently, cryptocurrencies are not recognized as a legitimate form of payment or a tangible asset in Vietnam. The State Bank of Vietnam has declared bitcoin and other cryptocurrencies illegal, and those who use them for trading can face fines of up to $8,700 and jail time.