Vietnam steps up regulations on digital currency

09:06 | 13/04/2018 Finance - Banking

Prime Minister Nguyen Xuan Phuc has signed a directive calling for stronger measures to rein in Bitcoin and other digital currencies as it is feared that they could destabilise the financial market and hurt traders.

Digital currencies are feared to destabilise the financial market and hurt their traders

Under the decree, credit institutions are not allowed to carry out digital currency-related transactions and must swiftly report any suspicious activities.

Public companies, brokerages, fund management companies and investment funds are banned from any illegal activities related to digital currencies and are required to comply with the anti-money laundering rules.

The Government leader also asked the authorities concerned to restrict the import of coin mining hardware and double down their efforts to prevent fraudulent activities concerning digital currencies.

Meanwhile the Ministry of Justice has been tasked with perfecting the legal framework on regulating digital currencies and virtual assets.

In recent months, government agencies have issued many warnings on the risks of digital currencies and their use for criminal activities due to their anonymity and decentralisation.

The directive stated that digital currency investment activities, especially the use of digital currencies to mobilize funds under Ponzi schemes, are developing in a complicated fashion and could affect financial stability.

Theo NDO