While the cryptocurrency market in Vietnam is not as big as in comparable countries, a growing awareness among the population about cryptocurrencies is leading to an increase in the total number of cryptocurrency transactions in the country.
Although cryptocurrency payments are banned in Vietnam by the State Bank of Vietnam, people continue to import equipment to mine various digital currencies. But government intervention looms as a prominent risk, one that may stop the growth of cryptocurrency in 2018.
of Cryptocurrency in Vietnam
The State Bank of Vietnam passed a law recently which banned using Bitcoin or any other cryptocurrency as a payment method within the country’s borders. The country also forbade merchants from providing cryptocurrency payment services to the Vietnamese public and said that those caught would face persecution under the law.
The ban in Vietnam follows similar bans enacted by the Chinese and South Korean governments. The announcement was unexpected, as previously the Vietnamese government had claimed they were looking at options to legalize cryptocurrency usage in the country.While the government says the ban is in order to prevent the use of cryptocurrency for unlawful activities, it results in dramatically curtailing the growth of cryptocurrencies in the country, even for legitimate purposes.
of ICOs in Vietnam
The ban on cryptocurrency payments in Vietnam has affected ICO operations in the country severely. While Vietnamese government officials have not spoken officially about ICOs or their regulation, analysts speculate that ICOs, too,could face a similar ban , with the government stepping in when it comes to prospective ICOs in the country.
Markets in Vietnam
Cryptocurrencies have a small market share in Vietnam, with only a handful of Vietnamese people using digital currencies. The sudden banning of cryptocurrencies by the Vietnamese government has come as a surprise to many crypto evangelists in the country as well as the world.
It remains to be seen whether the y ban is a temporary one meant to be as a placeholder before proper regulations are implemented or a permanent one with no amendments in the coming years.
*IBC’s planning and strategy team can provide expert advice on ICOs in different jurisdictions. If you’re thinking of holding an ICO in Vietnam and you’d like more information, contact us here.
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