Central Bank of Vietnam Ban Cryptocurrency

Central Bank of Viet Nam Ban Cryptocurrency

Previously the central bank of Indonesia did not recognize the virtual currency as a legitimate servant apat. This time the cryptocurrency ban came from Vietnam. The news is getting to the long list of ban cryptocurrency in Asia, especially in Southeast Asia.

Also read: Central Bank of Indonesia Stops Bitcoin Payment Processor, Exchanges Not Impacted

Vietnam's central bank, State Bank of Vietnam has stated that the use of digital currency in the country has been considered illegal. The central bank also announced it would impose fines on anyone caught using cryptocurrency, where the ban would begin in early 2018.

The new monetary law issued by the bank is scheduled to come into effect in the first quarter of 2018. Bitcoin and other virtual currencies are considered illegal and their use will be banned in Vietnam. The law also states that the only legitimate payment method in the country is issued or controlled by the State Bank of Vietnam.

Vietnam Bans Cryptocurrency Due To Be Considered Illegal

The ban imposed by the State Bank of Vietnam came at a time when Bitcoin, the most famous cryptocurrency, managed to set a record high on the trading market. This is expected to affect the impact of the new law on the use of virtual currency in the country. However it has been determined that the ban on virtual currency will have little or no effect on individuals who want to use it in their transactions. The only thing the government can do is launch a campaign against a centralized company that uses a digital currency.

The decision of the central bank to consider cryptocurrency is something illegal has been viewed as something that is unfortunate, because the ban stifles innovation in the financial sector. However, the law could be regarded as a way of government to imitate the actions of other countries around the world. It is hoped that this ban can be lifted in the future if fears or concerns of possible fraud involving the use of digital currency will prove otherwise.

Other Southeast Asian countries, Indonesia through the Central Bank of Indonesia has also banned any form of payment using bitcoin. The Governor of Bank Indonesia has reaffirmed the monetary authority's stance that bitcoin is not a legitimate payment method in the country.

Furthermore in South Korea last month has also followed in China's footsteps to prohibit any fund-raising using the virtual currency in Initial Coin Offering (ICO). The Financial Services Commission of Korea Sealtan said that ICO will be banned because the trading of virtual currency needs to be controlled and closely monitored.