The Vietnamese central bank, the State Bank of Vietnam, has declared illegal the use of digital currencies in the country. The central bank also announced that it would impose a fine on any person captured using cryptocurrence from 2018.
Based on the new monetary law issued by the bank which is expected to come into effect at During the first quarter of 2018, Bitcoin and other virtual cryptocurrencies are already considered illegal and their use will be banned in the country. The law also states that the only payment methods allowed in the country are those issued or controlled by the State Bank of Vietnam.
Performance of Bitcoin and other digital currencies on the market and possible effects of the ban
The ban imposed by the State Bank of Vietnam intervenes at a time when Bitcoin, the main cryptocurrency, reaches peaks in the commercial markets. This should affect the impact of the new law on the use of virtual currencies in the country. It is certain, however, that the prohibition of virtual currencies will have little or no effect on individuals who want to use them in their transactions. The only thing the government can do is launch a campaign against centralized corporations using digital currencies.
The central bank's decision to declare cryptocurrencies illegal is considered very regrettable as it stifles innovations in the financial sector. However, the law can be seen by the government as a way to emulate the actions of other countries of the world. It is expected that this ban can be lifted in the future if fears or apprehensions of possible scams involving the use of digital currencies will be proven otherwise.