Leaders of the Ministry of Industry and Trade, the Ministry of Public Security as well as the State Bank of Vietnam have concurred that operations of foreign exchange (forex) platforms are illegitimate, while cryptocurrencies are not methods of payment compliant with law in the nation.
The statements were made during a regular government press meeting on Tuesday.
According to Dao Minh Tu, Deputy Governor of the State Bank of Vietnam, foreign currency trading and derivative services can only be provided by licensed credit institutions and commercial banks.
The central bank has not licensed any organization to run these services, Tu asserted.
“The establishment of forex trading platforms is against the law and should be penalized accordingly,” he stated.
In reality, these forex schemes are tempting new investors with promises of profit rates reaching as high as three digits.
Due to the illegitimate nature of these platforms, investors will not be protected by law, Tu warned.
Also commenting on the phenomenon, To An Xo, chief of the Ministry of Public Security Office, said the agency has urged the national government to order a thorough review of forex investment from the Ministry of Justice.
The review will inform Vietnam’s effort to harness the forex market, plus helping investors making the right choice and avoiding scams, Xo added.
Ministries should tackle issues of illegitimate forex schemes by issuing detailed guidance on the implementation of current regulations related to forex, said Do Thang Hai, Deputy Minister of Trade and Trade.
|Dao Minh Tu, Deputy Governor of the State Bank of Vietnam, speaks during a regular government press meeting on March 2, 2021. Photo: Nguyen Khanh / Tuoi Tre|
E-commerce regulators in Vietnam are struggling to detect illegal transactions, which in turn hinders the sector's development, Deputy Governor Tu said.
For that reason, the State Bank of Vietnam has required that e-commerce platforms reinforce security measures for their payment systems, while credit institutions and payment intermediaries must also alert customers to fraud risks on a regular basis.
Tu added that cryptocurrency should not be used in lieu of fiat money which is recognized as a means of transaction by Vietnamese law.
“Relevant agencies are working on issues of legitimacy and management for cryptocurrency trading, as well as providing an official definition of crypto-assets,” Tu revealed.
As per Vietnamese law, bitcoin and other similar types of cryptocurrency are not considered legitimate modes of payment.