Vietnam Ups their Regulations Against Crypto Amid the Country’s Largest Crypto Scam

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Authorities in Vietnam are calling for tougher measures on cryptocurrency transactions and investments amid an alleged crypto scam that could be the largest one the country has seen.

Vietnam Prime Minister Nguyen Xuan Phuc ordered government bodies to heighten the “management of activities related to bitcoin and other cryptocurrency.”

  • The State Bank of Vietnam (SBV) and the Ministry of Finance were ordered to direct companies against cryptocurrency transactions for illegal activities. Suspicious transactions should be immediately reported.
  • The Ministry of Finance was also tasked conduct research on the international cryptocurrency scene in order to come up with a regulatory framework for ICO management.
  • The ministry is to look into the restriction of the import of possible mining hardware, as well.
  • The media should raise awareness about the risks that crypto trading and investing pose.
  • The Ministry of Justice will work with the Ministry of Finance, the Ministry of Information and Communications, an the SBV to complete the legal framework on cryptocurrencies.

Vietnam is not exactly a crypto-friendly country. According to Le Dong Phong, Police Chief in Ho Chin Minh:

“All cryptocurrencies and transactions in cryptocurrencies are illegal in Vietnam.”

They believe that cryptocurrency investment and trading along with initial coin offerings could affect the stability of the Vietnamese financial system with grave risks to investors.

Biggest Crypto Scam in the Country

The official order follows an investigation on what could possibly be Vietnam’s largest cryptocurrency scam yet.

Modern Tech JSC is a company accused of raising money from Ifan and Pincon token sales. A weekend protest against the company has ensued from the alleged VND 15 trillion ($658 million) scam.

In an interview with Reuters, Phong said:

“We are gathering information about the case, but officially we haven’t launched an investigation until we receive accusations from any of the alleged victims.”

 

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