Vietnam Bans Bitcoin as Payment Method; Adopters Face $9,000 Penalty

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Vietnam’s national bank has decided that digital forms of money like bitcoin are restricted as a technique for installment in the nation.

The State Bank of Vietnam (SBV), Vietnam’s national bank, has finished building up a lawful system for cryptographic forms of money in the nation following requests by Vietnamese Prime Minister Nguyen Xuan Phuc prior this year.

In a recently discharged notice today, the national bank recorded the perceived exemptions among non-money installment strategies endorsed by the specialist. They incorporate customary installment components, for example, checks, installment requests and bank cards (credit and charge). Bitcoin isn’t among them and is, of course, governed as an illicit installment instrument.

A portion from the national bank’s announcement perused:

[A]ccording to the provisions of the law, Bitcoin and other virtual currencies are not lawful 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 data still does not uncover any express rules on digital currency mining and it is misty if the “issuance and supply” of bitcoin reaches out to cryptographic money trades.

The national bank’s authentic position is presently in opposition to past reports that guaranteed the Prime Minister’s force to push for a system was toward legitimizing digital forms of money. As announced in August, the proposed design at the time was to discharge authoritative drafts to authorize cryptographic forms of money by August 18 in front of duty rules for adopters in mid-2019.

Besides, the present notice likewise uncovered subtle elements of fines and the likelihood of further indictment for cryptographic money adopters.

The expert stated:

Use of illegal means of payment (including bitcoin and other similar virtual currencies) will be subject to a fine of between VND 150 million and 200 million [approx. $9,000]. At the same time, as of January 1, 2018, the act of issuing or using an illegal means of payment (including bitcoin and other similar virtual currencies) may be subject to prosecution.

The SBV’s position on digital forms of money is like that of its Indonesian partner. A week ago, Bank Indonesia (BI) senator Agus Martowardojo expressed bitcoin isn’t perceived as an official strategy for installment by the national keep money with the additional risk that adopters “who utilize it will be managed.”

It must be emphasized that the restrictive position isn’t a sweeping prohibition on cryptographic forms of money in Vietnam or Indonesia and ‘just’ stretches out to their utilization as installment instruments.

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