Vietnam Finance Ministry Warns Of Crypto Trading Risks 

News / 03.03.2021

Vietnam Ministry of Finance has warned citizens against the dangers of illegal trading and investing in cryptocurrencies. This comes following the growing popularity of cryptocurrencies, particularly bitcoin in the Asian nation. 

A primary concern for authorities 

As per a report from local news outlet Vietnambreakingnews the Ministry of Finance put out the warning on March 2nd, the story says that the ministry is wary that cryptocurrencies are associated with high-tech crimes in the nation. 

The ministry noted that crypto trading was becoming more common in many cities globally, keeping a close eye on the growing trend. The ministry has also instructed the State Securities Commission to monitor cryptocurrencies’ illegal trading on online trading platforms.

Vietnamese financial regulators have been mostly critical of cryptocurrencies and virtual currencies. In the past, the State Securities Commission had warned investors to be cautious about investing in cryptocurrencies. The regulator had also instructed financial service providers not to provide trading and intermediary services for cryptocurrencies.  

Recently police in the regional city of Da Nang warned about a new crypto scam in the region. Cybercriminals perpetuated these scams via investment mobile apps downloaded from the App Store and play store.

Cryptocurrencies adoption continues to grow

Vietnam does not have specific laws governing the issuance and trading of cryptocurrency and virtual assets. In May 2020, the Ministry of Finance set up a committee in charge of studying and proposing a financial framework for cryptocurrencies. 

A recent survey showed that VietNam ranked second among 74 Asian countries in terms of cryptocurrency use. The remittance payments within the country primarily drive this. Millions of Vietnamese work abroad and prefer the ease of remitting money via cryptocurrencies than using existing financial services. 

Also, more than 20% of the respondents said that they used or owned cryptocurrencies in 2020. With the current bullish run in the crypto markets, crypto adoption will continue to grow as more retail investors look to profit.

Olowoporoku Adeniyi is a blockchain enthusiast and crypto evangelist. Currently he loves all things crypto and covers happenings within the blockchain space.