The State Bank of Vietnam (SBV) has announced the legal framework for digital currencies, as reported by local publications, and payments in the form of bitcoin and other digital currencies have been banned completely within the country. Penalties for cryptocurrency adopters have also been declared. The SBV’s announcement, made on October 28th, was in accordance with the orders of Vietnamese Prime Minister, Nguyen Xuan Phuc.
Vietnamese newspaper Cong An detailed:
“The issuance, supply, [and] use of bitcoin and other similar virtual currencies as a means of payment is a prohibited activity in Vietnam. Under the provisions of Clause 6, Article 27 of Decree No. 96/2014 / ND-CP on administrative sanctions in monetary and banking activities, acts of distributing, including bitcoin and other similar virtual currencies, will be fined fines from 150 million to 200 million [VND].”
While the issuance, distribution, and use of bitcoin are banned by the law, the currency itself is not prohibited from circulation.
The president of the FTP University Le Truong Tung commented that in the State Bank's view, stating that accepting bitcoin as payment will make the economy quite complex and difficult to control. Due to the Bitcoin network, there is an opportunity for tax evasion as well as illegal transfers and payments. Accepting bitcoin as currency also brings about legal complications, as the nation would not hold sovereignty over issuing this type of currency.
The university itself, however, is accepting tuition fee in the form of bitcoin, especially from foreign students. Last week Tung stated, “suppose that FPT University has a program of exchanging and accepting bitcoin value instead of tuition fee, which is not the use of a means of payment, it is difficult to punish them.”
Meanwhile, Zing reported that Deputy Pham Phu Quoc proposed for the legalization of bitcoin transactions while speaking at the National Assembly last week, asserting that whether the law recognizes them or not, bBitcoin transactions will still occur.
Those who violate the Vietnamese ban on bitcoin, which takes place on the 1st of January 2018, are subject to criminal prosecution. Additionally, violators may face a fine up of to 200 million dong (~$8,800 USD).
Vietnamese newspaper Cong An detailed:
“The issuance, supply, [and] use of bitcoin and other similar virtual currencies as a means of payment is a prohibited activity in Vietnam. Under the provisions of Clause 6, Article 27 of Decree No. 96/2014 / ND-CP on administrative sanctions in monetary and banking activities, acts of distributing, including bitcoin and other similar virtual currencies, will be fined fines from 150 million to 200 million [VND].”
While the issuance, distribution, and use of bitcoin are banned by the law, the currency itself is not prohibited from circulation.
The president of the FTP University Le Truong Tung commented that in the State Bank's view, stating that accepting bitcoin as payment will make the economy quite complex and difficult to control. Due to the Bitcoin network, there is an opportunity for tax evasion as well as illegal transfers and payments. Accepting bitcoin as currency also brings about legal complications, as the nation would not hold sovereignty over issuing this type of currency.
The university itself, however, is accepting tuition fee in the form of bitcoin, especially from foreign students. Last week Tung stated, “suppose that FPT University has a program of exchanging and accepting bitcoin value instead of tuition fee, which is not the use of a means of payment, it is difficult to punish them.”
Meanwhile, Zing reported that Deputy Pham Phu Quoc proposed for the legalization of bitcoin transactions while speaking at the National Assembly last week, asserting that whether the law recognizes them or not, bBitcoin transactions will still occur.
Those who violate the Vietnamese ban on bitcoin, which takes place on the 1st of January 2018, are subject to criminal prosecution. Additionally, violators may face a fine up of to 200 million dong (~$8,800 USD).