Various Asian countries have taken an opposing stance toward cryptocurrency. In Vietnam, the government’s securities watchdog is taking things to the next level. Earlier this week, the State Securities Commission decided to ban nearly all cryptocurrency-related activities in the country.
Vietnam Cracks Down on Bitcoin
Some regions across Asia have shown a tendency to oppose Bitcoin and other cryptocurrencies. In Vietnam, that opposition is only growing stronger as time progresses. A new decision by the country’s State Securities Commission spells trouble for the cryptocurrency industry in the country. This setback does not come as a complete surprise to most industry experts.
The new ruling pertains to nearly all cryptocurrency-related activities one can think of. All public companies and funds providers are advised not to engage in any activity related to cryptocurrency. This includes their own projects, as well as extending services to exchanges, wallet providers, and so forth. It is a decision very similar to the Reserve Bank of India’s “veto” on cryptocurrency.
No relevant company is allowed to issue, transact, or offer brokerage activities regarding Bitcoin and altcoins. Public companies, securities companies, and other funds service providers are banned from partaking in any cryptocurrency venture. They must also obey current regulations on anti-money laundering. This latter part is the least obstructing guideline to cryptocurrency activity in Vietnam.
The Future of Cryptocurrency Activity
These new changes will impact Vietnam’s status in the cryptocurrency world. Earlier this year, the State Bank of Vietnam banned service providers from making transactions involving cryptocurrencies. In a statement, the bank said:
[A]ccording to the provisions of the law, Bitcoin and other virtual currencies are not lawful means of payment in Vietnam. The issuance, supply, use of bitcoin and other similar virtual currency as a means of payment is prohibited in Vietnam.
The country is now officially extending the ban in a rather aggressive manner. It seems there is no real future for Bitcoin and altcoins in Vietnam under the current circumstances.
Cryptocurrency mining is also affected by these new developments. Importing cryptocurrency mining equipment is no longer allowed in the country moving forward.
Vietnam is making itself obsolete in the cryptocurrency world. That decision may harm the country in the long run. Global demand for Bitcoin is on the rise as of late. Regulatory developments in other countries seem to foster industry growth. The contrarian view by Vietnam’s regulators is unfortunate but may not remain in place forever. However, using cryptocurrency to make payments is illegal, and people who do so are subject to fines as high as $9,000.
Has Vietnam cut itself completely out of the cryptocurrency ecosystem? What will the financial effects be of such a decision? Let us know in the comments below.
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Author: JP Buntinx