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- Vietnam, officially the Socialist Republic of Vietnam, announced that investing in cryptocurrency would be an illegal offense.
- The officials have also said that those who encourage people to invest in cryptocurrency schemes are offenders of the law.
- Ministry of Justice advised all the citizens to be aware of such Ponzi schemes related to the cryptocurrency.
Vietnam, officially the Socialist Republic of Vietnam, announced that investing in cryptocurrency would be an illegal offense. The officials have also said that those who encourage people to invest in cryptocurrency schemes are offenders of the law. The Ministry of Justice advised all the citizens to be aware of such Ponzi schemes related to the cryptocurrency.
The Southeast socialist country also stated that mobilization of funds for cryptocurrency and assets would be against the law. For any payment to be valid the currency has to come under the constitution’s legal entity but the cryptocurrency does not come under the legal entity of Vietnam. Hence, all-digital transactions are also invalid.
Government concerns regarding fraudulent cryptocurrency schemes
The former deputy head of the Criminal Police Ministry of Public Security, Vu Hoang Lien, said that the investors investing in cryptocurrency were running at a very high risk of being defrauded through Ponzi schemes. He also pleaded the citizens to not fall prey by lucrative schemes which promise a higher rate of interest. He added that these schemes could lead to debts and also the violation of the Vietnamese law.
There have been reports were cryptocurrency promoters have promised the residents over 90 percent or even 120 percent returns on their investment.
Before putting a complete ban on the cryptocurrency, the Vietnamese Government was on crossroads. They explored three alternatives. First, applying a relatively lax regulatory regime. Second, the prohibition of the use of Cryptocurrency. Third, legalizing digital asset transactions.
Fines imposed by the Vietnamese Government
The officials have taken the orders very seriously and have already started fining offenders. According to the new law, people who use, issue, or supply cryptocurrency and digital assets will be liable to pay an administrative fine of VND150 million – VND200 million. This sum amounts to around the US $ 6,470 –US $ 8,628.
Even after imposing such heavy fines, there have been reports where locals are still investing in such schemes.
