Vietnam’s Prime Minister signs a directive against illegal practices executed with Virtual Currency
Prime Minister Nguyễn Xuân Phúc has taken a step forward against any cryptocurrency frauds happening in Vietnam. The initiative took place after the media had reported about an alleged cryptocurrency fraud involving money worth VNĐ15 trillion. He has signed the directive for strengthening management activities regarding digital currencies.
The legal letter was issued from Government office yesterday. The letter from Deputy Prime Minister Vương Đình Huệ laid down directives on improving and completing the legal framework for an effective management of the digital currency.
The authorities have always cautioned against the risks associated with digital coins. The risk associated with this currency is money laundering, terrorist financing, illegal remittance, tax evasion and frauds. The reason for this occurrence is because of no government backing. The other reasons are investment and trading activities. Thirdly, the money raised through ICOs is complicated and risky.
To limit the problems, detect, prevent and handle it effectively, Prime Minister has taken few steps in corporation of State Bank of Việt Nam (SBV). The bank must direct credit institutions and intermediary payment services not conduct any illegal transactions related to cryptocurrency. The organisation must take relevant steps to strengthen their management review and should report suspicious activities related to cryptocurrency.
Furthermore, the State Bank of Việt Nam will work with Ministry of Public Security to handle any actions that are related to cryptocurrency like using it as a mode of payment. This is against Vietnam law.
The Ministry of Finance will be directing organisations like public companies, securities firm, fund management companies and security investment funds not carry out any illegal activity related to virtual currency. The directive also emphasised restrictions against importing of hardware for cryptocurrency activities.
Ministries of Public Security, Industry and Trade, Information and Communications and Justice should invigorate their process for investigation, detection, prevention and handling of rule violations. The Ministries and local authorities must spread the knowledge about investment and trading using cryptocurrency.
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