Tightening management of virtual currencies to prevent money laundering: SBV

August 04, 2022 | 15:54

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The State Bank of Vietnam (SBV) has given timely instructions to banks in order to prevent risks and acts that take advantage of virtual currencies in transactions, Deputy Governor Dao Minh Tu has said.

Hanoi – The State Bank of Vietnam (SBV) has given timely instructions to banks in order to prevent risks and acts that take advantage of virtual currencies in transactions, Deputy Governor Dao Minh Tu has said.

Tightening management of virtual currencies to prevent money laundering: SBV

SBV Deputy Governor Dao Minh Tu (Photo: VNA)

Asked about whether the central bank includes cryptocurrencies in the draft Law on Anti-Money Laundering at a regular government meeting in Hanoi on August 3, Tu said the central bank is considering this issue cautiously and comprehensively in preparation for the perfection of the draft law to be submitted to the legislature during its upcoming session.

The official reaffirmed that bitcoin and other similar virtual currencies are not legal means of payment in Vietnam.

According to Tu, on the basis of recommendations by global anti-money laundering organisations, countries should pay attention to assets and products, the so-called technology in the financial sector, to ensure strict management and prevent money laundering or terrorism and other purposes.

Apart from the law, the Government will issue documents to fight money laundering, terrorism and tax fraud or even the use of the assets as gifts, which has been seen as corruption and bribery, he continued.

Credit institutions or intermediate payment service providers are not allowed to perform transactions and tasks related to virtual currencies due to possible risks of money laundering, terror financing or tax fraud, Tu said.

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Vietnam is a country that has been booming economically for years. It is also open to new ideas and technologies. It is therefore not surprising that Vietnam is now ranked second in the world (out of 74 countries surveyed) in the use of cryptocurrencies. According to Statista - a German company specialising in market and consumer data - 21 per cent of respondents in Vietnam said they had used or owned cryptocurrencies in 2020. Only Nigeria is ahead of Vietnam.

Is there a future for crypto in Vietnam?

Despite their great volatility, cryptocurrencies have experienced noteworthy milestones in the past few months, reaching record highs and fuelled by wild expectations across the globe. Vinh Luu, managing partner at Asia Legal, dives into the risks and rewards for cryptocurrencies in Vietnam in particular.

ECB calls for global regulation of cryptocurrencies

A senior European Central Bank official called Monday for global regulation of cryptocurrencies as the virtual assets are now bigger than the risky mortgage loans behind the 2007 global financial crisis and show signs of being a bubble.

By PV

VNA

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