The former head of Vietnam’s Criminal Police Department, Vu Hoang Kien, declared that campaigns to raise funds for cryptology companies are illegal in the country.
Kien warned Vietnamese citizens to be vigilant and not to be lured by any kind of investment plans in Bitcoin Trader crypto currency, no matter how high the profits.
The Vietnamese government will launch a crypto coin research group to evaluate the policies
Apart from the risk of investing in such schemes, he further insisted that investments and payments made with crypto currencies are not legally recognized in the country. Therefore, investing or using them will also mean violating Vietnamese laws.
Despite warnings, crypto investments have continued within the country, said Nguyen Nam Hao of the Police Department for Corruption, Smuggling and Economic Crime. He added that to reduce fraud and minimize other negative effects of crypto currencies, Vietnam needs stricter and more specific regulations.
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Crypto repression in Vietnam
As reported by Cointelegraph in August 2017, Vietnamese Prime Minister Nguyen Xuan Phuc ordered the Central Bank of Vietnam and the Ministry of Finance to review virtual currencies and establish a legal framework to regulate them.
The revision, however, did not result in their favour. Only the following month, the Central Bank declared the use of Bitcoin and other crypto-currencies illegal in the country. In April 2018, these were officially declared illegal as a means of payment for goods and services.
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It was recently reported that the Vietnamese Ministry of Finance planned to establish a nine-member research group on this topic that would focus on crypto space speculation and propose relevant policies to regulate the industry.