The Prime Minister of Vietnam has signed a directive for the nation’s central financial institution and the Ministry of Finance to strengthen the administration of cryptocurrency-related actions. This follows an alleged fraud involving a cryptocurrency that scammed 32,000 Vietnamese out of VNĐ15 trillion.

Prime Minister’s Directive

The Vietnamese Prime Minister Nguyễn Xuân Phúc has signed a directive to strengthen “the management of activities related to bitcoin and other virtual currencies,” Viet Nam News reported, elaborating:

To restrict the dangers and hostile impacts on society, in addition to promptly detect, forestall and deal with fraud, the Prime Minister requested the State Bank of Vietnam (SBV) to direct credit score establishments and middleman cost service organisations not to conduct unlawful transactions associated to digital currencies.

The authorities have repeatedly warned in regards to the dangers related to cryptocurrencies “as well as their use for criminal activity such as money laundering, terrorist financing, illegal remittance, tax evasion and fraud,” the information outlet added.

Preventing Crypto Scams

This directive follows an alleged crypto fraud involving a theft of VNĐ15 trillion (~USD$658 million) from 32,000 victims in Ho Chi Minh City. Dozens of buyers protested over the weekend on the workplace of Modern Tech Jsc Co, which marketed the Ifan tokens. They carried banners saying “biggest digital money fraud in history,” the publication conveyed, including that the placement turned out to be a ghost tackle with no signal of firm actions.

For an funding of $1,000 or extra, Modern Tech promised a return of not less than 48% in money and an extra 8% for recruiting different consumers, one protester defined. However, the worldwide decline of the crypto market has triggered Ifan’s worth to plummet to about 1 US cent and the corporate subsequently modified its coverage to pay out curiosity and principal again within the Ifan forex as an alternative of money, the publication described.

The SBV has been carefully following this case, the information outlet reported a central financial institution official indicating. “We are gathering information about the case, but officially we haven’t launched an investigation until we receive accusations from any of the alleged victims,” Le Dong Phong, the police chief of Ho Chin Minh City advised Reuters.

Crypto Laws In the Works

According to the Prime Minister’s directive, monetary organizations should “strengthen their management, review and report suspicious transactions related to cryptocurrencies,” Viet Nam News added.

Following the directive signing, the Vietnamese Government Office revealed Letter No. 2768 / VPCP-KTTH on Wednesday to present instructions for the Ministry of Finance, Information and Communication in addition to the SBV to observe, in accordance to the Government Gazette.

The Prime Minister continues to put the Ministry of Justice answerable for finding out and finishing a “uniform and unified legal framework on the management and handling of virtual currency, virtual property and electronic money,” the Gazette detailed. The Justice Ministry, the SBV, and different associated companies are already finishing up the crypto-related duties assigned by the Prime Minister in a directive submitted in January. According to the Gazette, the Justice Ministry despatched a written assertion to the Prime Minister, stating:

Although there aren’t any rules on digital forex, there are additionally no guidelines that ban transactions utilizing digital forex.

The SBV additionally submitted its feedback to the Prime Minister, emphasizing that it “is the only agency issuing paper money and coins” that are the one authorized technique of cost in Vietnam. “As such, the SBV believes that bitcoin and other similar virtual currencies are not currencies and legal means of payment in Vietnam. The issuance, supply, use of bitcoin and other similar virtual currency as a means of payment is prohibited in Vietnam,” the Gazette reiterated.