Vietnam’s Ministry Concerned About the Risks Attached to Crypto Trading

The Finance Ministry in Vietnam has declared that cryptocurrencies have no legal framework in the region. 

Cryptocurrency in Vietnam is not regulated yet. officials of the country’s finance department are concerned about unregulated crypto trading. They are warning the public about the risks attached to the crypto industry without the proper legal framework. 

Vietnam’s Ministry of Finance stated, “Vietnam has not adopted any legislation related to the issuance, trading, and exchange of virtual currencies and virtual assets.”

According to the Ministry, Vietnamese Security laws do not have any guidelines regarding digital currencies. Currently, there are only two exchanges in the country, Hanoi Stock Exchange and Hoshi Minh Stock Exchange that have been permitted to trade securities in the country.

The Ministry has developed a determined research group to fill the gaps in the legal framework of digital currency. The research group will investigate and analyze the crypto industry and then work towards establishing policies for cryptocurrency regulations in Vietnam. 

Financial authorities in Vietnam are reminding citizens that crypto is not legislated in their country, citing numerous risks. On the bright side, they are actively looking into what regulations they can make to add clarity to the situation. https://t.co/FvDxaCOUn2

— Cointelegraph (@Cointelegraph) March 4, 2021

The Finance Ministry also highlighted the need to spread awareness about the industry. This will assist in preventing potential risks related to trading and investing. The threats linked with the illegal and fraudulent crypto schemes can also be diminished with awareness. 

The warning from the government came due to the increasing scepticism linked to this new and growing platform of a cryptocurrency called the Pi Network. This new platform is becoming popular in Southeast Asia. Some are concerned that the platform could be a pyramid scheme. A report by a blockchain expert at the Posts and Telecommunications Institute of Technology in Hanoi states, the Pi platform is lacking transparency to be a legal blockchain project. 

Cointelegraph has previously reported that the Vietnamese government has been, in recent years, somewhat reluctant to adopt the digital currency industry. However, it has endorsed blockchain technology which is underlying blockchain technology. Vietnam has already banned cryptocurrency as a form of payment in 2018. The authorities have continuously encouraged people to avoid the use of cryptocurrency.