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2017 was a good year for BitCoin and other cryptocurrencies. This has led to a massive interest among Vietnamese, and thus an increasing number of imported cryptocurrencies mining hardware and cryptocurrencies transactions as an investment in Vietnam. However, the heat of excitement was soon cooled down as cryptocurrencies in Vietnam is not legally accepted as a medium of exchange for goods and services.
The Legitimate Use of Cryptocurrencies in Vietnam?
Many issues arose as a result of the sudden high attention of Vietnamese in BitCoin in 2017:
- Many frauds like Ponzi scheme related to cryptocurrencies in Vietnam, which have swindled billions of VND, have been spotted and given as warnings to the public by the authorities.
- When they were not officially banned nor recognized as assets in Vietnam, BitCoin and other digital currencies became nontaxable under Vietnamese law, while a huge amount of income can come from the investment.
All of which call for a proper regulatory framework for cryptocurrencies in Vietnam:
- In an official dispatch in June 2018, Vietnamese Ministry of Industry and Trade and Ministry of Finance were assigned to consider the temporary prohibition of importing cryptocurrencies mining equipment.
- In July 2018, State Bank of Vietnam also raised a concern to the Ministry of Industry and Trade, which led the ministry to consider applying a different rate for the electricity used in cryptocurrency mining (the current rate is the same as that applied in commercial business).
- From October 2017, any issuance, provision, or use of cryptocurrencies in Vietnam as a method of payment were made illegal, (maybe at least) until a regulatory framework is complete, and the misuse of the technology in illegal transactions or criminal activities is under control.
- Regulation related to digital currencies and other digital assets are being researched and expected to be complete in 2019.
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About the Transaction Market of Cryptocurrencies in Vietnam
Investment in cryptocurrencies in Vietnam has started early, since the early age of blockchain technology (2009), but only gained a growth around 2013 and an incredible amount of attention in 2017.
Usage and understanding of the technology behind the cryptocurrencies in Vietnam, especially the general public, were limited before 2017, which along with the incomplete legal framework at present, their application as a popular method of payment in Vietnam still has a long way to go.
However, Vietnam is still ranked in countries with the highest number of logins in BitCoin exchanges and among the largest cryptocurrencies transaction markets.