Vietnam is treading waters into the cryptocurrency industry, as the government recently commissioned a research group for the purpose. The Vietnamese Ministry of Finance is conducting an in-depth study of cryptocurrencies for regulation purposes.
One Million Vietnamese Are Reportedly Crypto Users
According to ASEAN Briefing, the ministry seeks to gather enough data to clearly see how a regulatory process can be made in the country. The research comes in the wake of virtual currencies booming globally in terms of popularity, says the announcement.
The government believes there is an estimated one million Vietnamese already using digital assets, and the expectations are bullish with a 30-fold increase by 2030.
Vietnam is also witnessing increasing cashless solutions for payments, such as QR codes, e-wallets, and mobile apps. Such technology adoption was boosted after the governmentâ€™s pushing via the prime minister since 2017, who was expecting to reduce cash transactions by 90% in 2020.
The study will focus on the following topics, which will be centered on the existing legal frameworks in the United States, Japan, and Europe:
Crypto Crimes â€˜On the Riseâ€™ in Vietnam
However, the countryâ€™s wishes to regulate the digital currency environment come in hand with concerns among the government about crypto-related crimes, including cyber hacks and scams.
The announcement cites the case of Modern Tech, a domestic startup that scammed around $660 million from thousands of Vietnamese through initial coin offerings (ICOs). It adds:
As of press time, Vietnam doesnâ€™t recognize cryptocurrencies as a legal means of payment or a tangible asset. In fact, the State Bank of Vietnam labeled bitcoin (BTC) and other digital currencies as illegal, and people using them for trading purposes could face fines of up to $8,700 and jail time.
What do you think about this announcement? Let us know in the comments section below.
Disclaimer: This article is for informational purposes only. It is not a direct offer or solicitation of an offer to buy or sell, or a recommendation or endorsement of any products, services, or companies. Bitcoin.com does not provide investment, tax, legal, or accounting advice. Neither the company nor the author is responsible, directly or indirectly, for any damage or loss caused or alleged to be caused by or in connection with the use of or reliance on any content, goods or services mentioned in this article.