People’s needs for social and economic life are increasing day by day. Since then, it requires great progress corresponding to that requirement of people. With the desire for the world to become more modern and civilized, people are constantly researching and developing different fields. Technology is a great step in the history of human civilization. With such a diverse and popular appearance, Vietnam’s current policies and laws on virtual currencies are more concerned than ever. So how is it regulated? Today, LSX Lawfirm will give you an article about “Virtual currency market in Vietnam today“, as follows:
Define
Industrial revolution 4.0 has brought a spectacular change to the lives of each of us. Business models, social services, in turn, are digitally transformed to suit the conditions and integration of the community. One of the most prominent innovations of this period was the birth of the virtual money market (cryptocurrency) then.
It can be said that virtual money is a new social phenomenon; So now there are many definitions and interpretations of virtual currency. According to the typical understanding; Virtual currency (or digital currency) is an unregulated, issued digital currency; usually controlled by its developers; used and accepted among members of a particular virtual community.
Cryptocurrency market in Vietnam
The bank of Viet Nam
- Firstly, Confirm that Bitcoin is a form of digital currency (virtual money) of the virtual money market. Bitcoin is not issue by a government or a financial institution, but is create and operated on a system of computers connected to a peer-to-peer internet.
- Secondly, Bitcoin causes many harms and risks to users. It can become a tool for criminals to launder money; payment of illegal property; the risk of being hacked, stolen, or changed data; or being stopp trading is huge.
- Thirdly, There are many risks of financial bubbles, causing damage to investors; This transaction is not govern and controlled by any state management agency. Therefore; Bitcoin holders will bear the full risk because there is no protection mechanism.
- Finally, Credit institutions are not allow to use virtual currencies as a currency; or means of payment when providing services to customers.
Decision 1255/QD-TTg of the Prime Minister
On August 21, 2017, the Prime Minister issued Decision No. 1255/QD-TTG approving the project to complete the legal framework for the management and handling of virtual products, electronic money, and virtual currency.
Virtual currency market – issuance basis
- Firstly, Institutionalize the lines and policies of the Party and State on the protection of property rights and property rights in order to solve the inevitable realities that exist and will take place.
- Secondly, Contribute to the protection of the legitimate rights and interests of domestic and foreign investors in Vietnam; effectively prevent and control related risks and abuses; concretize regulations on property rights in the 2015 Civil Code in this area.
- Thirdly, Study; selectively acquire international experience in virtual currency to identify, build and complete the relevant legal framework on the principle of ensuring consistency, transparency and stability; and predictable of the legal system, in accordance with international practices.
Directive No. 10/CT-TTg of the Prime Minister
Directive No. 10/CT-TTG on strengthening the management of activities related to Bitcoin and other similar virtual currencies issued by the Prime Minister of CP on April 11, 2018.
Then The directive mentioned the risks, and consequences of activities related to virtual currency in recent times. Cryptocurrency players are prone to risks; the risk of using virtual currency for criminal activities (money laundering; terrorist financing, tax evasion, fraud…); investment, trading in virtual currency, raising capital through the issuance of virtual currency (ICO); especially, the operation of using virtual money to raise capital by the multi-level method is becoming more and more complicated; there is a risk of affecting the stability of the financial market, social order and safety; and can pose great risks to participating organizations and individuals.
Directive of the Governor of the State Bank of Vietnam
So In order to implement Directive No. 10/CT-TTG dated April 11, 2018, of the Prime Minister on April 13, 2018; The Governor of the State Bank of Vietnam has issued Directive No. 02/CT-NHNN on measures to strengthen control of transactions; activities related to virtual currency. The directive makes a request to the relevant units; units at the headquarters of the State Bank of Vietnam, State Bank branches in provinces and centrally-run cities seriously implement specific measures to strengthen control, processing transactions related to virtual currency then.
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Related questions
In Clauses 6 and 7, Article 1 of Decree 80/2016/ND-CP stipulates: Non-cash payment means used in payment transactions include: checks, payment orders, payment authorizations, collection requests, and authorizations. collection, bank cards, and other means of payment according to regulations of the State Bank. Accordingly, there is no payment method related to virtual currency; Thus, virtual currency is not approved in Vietnam; The law will not interfere with your mining or use of this coin for the purpose of consensus exchange.
“Virtual currency” is the subject of rights. The above point of view is that “virtual money” itself is not a right. When appropriate, the compromised subject wishes to reclaim that virtual money. Therefore, virtual currency is not currently a recognized asset class. In the coming time, competent state agencies need to have written regulations; specific instructions on this subject.
Up to now, there is no official document defining the legal nature of the virtual currency. Therefore, it increases the risk when investors invest in virtual currencies. The most popular trick today is setting up fake virtual currency wallets calling for investment. Raise capital or establish a company providing virtual currency exchange services and then commit acts of appropriation. This behavior carries the greatest risk. Because what investors lose is their real money. This is the risk when investing in virtual currencies that are most easily encountered. And also the risk that appears the most.
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