Business
Tough measures on cryptocurrency required
The Prime Minister Nguyen Xuan Phuc urged greater vigilance against cryptocurrency transactions and investments, as officials in Ho Chi Minh city asked police to investigate what could prove to be the country`s largest cryptocurrency fraud.
In a directive, the PM told the State Bank of Vietnam (SBV), the Ministry of Public Securities and other bodies to tighten the "management of activities related to bitcoin and other cryptocurrency", the government said.
"Cryptocurrency investment and trading and raising money through initial coin offerings are evolving in a more complicated manner," it said in a statement on its website.
These developments threaten to affect the stability of the financial system, social order and safety and posed great risks to corporate and individual participants, it added.
SBV, thus is requested to instruct credit institutions and intermediaries not to be involved in illegal cryptocurrency transaction; credit institutions and intermediaries to supervise and timely report high risk transactions related to cryptocurrency in accordance to the law.
Concurrently, the SBV is to cooperate with the Ministry of Public Security in tackling and preventing the use of cryptocurrencies as means of payment.
The Ministry of Finance to instruct public companies, securities and venture capitals to be restrained from cryptocurrencies transactions following the law on anti-money laundering; setting up measures against initial coin offering (ICO) activities; coordinating with related agencies in restricting importing virtual coin mining equipment and devices.
The Ministry of Public Security to cooperate with the Ministry of Industry & Trade to prevent and deal with illegal actions in relation to capital mobilization and business under the form of multi-level marketing, online fraud through cryptocurrency.
The statement followed an announcement from the Ho Chi Minh City People Committee requesting police to investigate accusations that a company, Modern Tech JSC, raised money from token sales of Ifan and Pincoin cryptocurrency.
The request followed a weekend protest by dozens of people who accused the company of "the largest ever cryptocurrency fraud involving VND15 trillion". This sum is equivalent to US$658 million.
Tough measures on cryptocurrency required.
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These developments threaten to affect the stability of the financial system, social order and safety and posed great risks to corporate and individual participants, it added.
SBV, thus is requested to instruct credit institutions and intermediaries not to be involved in illegal cryptocurrency transaction; credit institutions and intermediaries to supervise and timely report high risk transactions related to cryptocurrency in accordance to the law.
Concurrently, the SBV is to cooperate with the Ministry of Public Security in tackling and preventing the use of cryptocurrencies as means of payment.
The Ministry of Finance to instruct public companies, securities and venture capitals to be restrained from cryptocurrencies transactions following the law on anti-money laundering; setting up measures against initial coin offering (ICO) activities; coordinating with related agencies in restricting importing virtual coin mining equipment and devices.
The Ministry of Public Security to cooperate with the Ministry of Industry & Trade to prevent and deal with illegal actions in relation to capital mobilization and business under the form of multi-level marketing, online fraud through cryptocurrency.
The statement followed an announcement from the Ho Chi Minh City People Committee requesting police to investigate accusations that a company, Modern Tech JSC, raised money from token sales of Ifan and Pincoin cryptocurrency.
The request followed a weekend protest by dozens of people who accused the company of "the largest ever cryptocurrency fraud involving VND15 trillion". This sum is equivalent to US$658 million.
