Viet Nam has intensified inspections on cryptocurrency transactions as trading and investments using this payment system are on the rise in the country.
|Viet Nam has intensified inspections on cryptocurrency transactions as trading and investments using this payment system are on the rise in the country.- Photo genk.vn |
Transactions in cryptocurrency can threaten the stability of the financial market and social order due to the high risks involved.
Following the Prime Minister’s instruction issued recently, the State Bank of Viet Nam (SBV) this week ordered financial institutions and other organisations providing payment brokerage services not to conduct cross-border transactions in cryptocurrency for fear of money laundering, terror sponsoring, tax evasion and fraud.
Under the SBV’s directive, financial institutions and intermediary payment service organisations must intensify inspections, promptly report suspicious transactions with close connections to digital currencies and address violations.
They were ordered to set up plans to prevent illegal transactions and report to the SBV’s Payment Department before June 30.
Meanwhile, the SBV’s units must work with ministries and branches to carry out legal framework and solutions to handle the illegal use of cryptocurrency as a means of payment.
Local branches of the SBV across the nation are required to raise public awareness about the risks involved in cryptocurrency investment and trading, as well as the legal regulations on cryptocurrency.
Earlier, Prime Minister Nguyen Xuan Phuc asked SBV, financial institutions and other organisations providing payment brokerage services to intensify inspections and promptly report suspicious cryptocurrency transactions.
The Prime Minister signed Directive No.10/CT-TTg on the matter, following repeated warnings from relevant agencies on the risks associated with Bitcoin and other cryptocurrencies, along with the threat that cryptocurrencies could be used to finance crimes such as money laundering, terrorism, tax evasion and fraud.
Cryptocurrency is considered an illegal non-cash payment method in Viet Nam. The use of virtual money as a means of payment is prohibited and will be dealt with as per the country’s laws.
The police in HCM City are coordinating with relevant agencies to investigate an alleged cryptocurrency fraud involving more than 32,000 people and a sum of VND15 trillion (US$666 million).