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Vietnam prohibits Bitcoin as a method of payment; Adopters face a $ 9,000 fine

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The central bank of Vietnam has decreed that crypto-currencies like bitcoin are prohibited as a means of payment in the country. ]

The Central Bank of Vietnam (SBV), the Vietnamese central bank, has completed the development of a legal framework for cryptocurrencies in the country following the orders of Vietnamese Prime Minister Nguyen Xuan Phuc at beginning of the year.

In a recently released statement, the central bank listed recognized exceptions among non-cash payment methods approved by the authority. They include conventional payment mechanisms such as checks, payment orders and bank cards (credit and debit). Bitcoin is in fact not part of it and is, by default, considered an illegal payment instrument.

An excerpt from the statement of the Central Bank was as follows:

[A] According to the provisions of the law, Bitcoin and other virtual currencies are not legal means of payment in Vietnam; The issue, provision, use of Bitcoin and other similar virtual currencies as means of payment are prohibited in Vietnam.

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The information still does not reveal any explicit guidelines on the extraction of cryptocurrency and it is not clear whether the "issue and supply" of bitcoin extend to cryptocurrency exchanges.

The official position of the central bank is now contrary to earlier reports that the prime minister's impulse to push for a framework was to legalize cryptocurrencies. As reported in August, the plan planned at the time was to issue bills to legalize cryptocurrencies by August 18, before the tax guidelines for adopters in the middle of the year. year 2019.

In addition, today 's notice also revealed details of the fines and the possibility of further litigation against cryptocurrency users.

The authority stated:

The use of illegal means of payment (including Bitcoin and other similar virtual currencies) will be punishable by a fine ranging between 150 million and 200 million VND [approx. $9,000]. At the same time, as of January 1, 2018, the issuance or use of an illegal means of payment (including Bitcoin and other similar virtual currencies) may be subject to prosecution .

The SBV's position on cryptocurrencies is similar to that of its Indonesian counterpart. Last week, the governor of Bank Indonesia (BI), Agus Martowardojo, said that bitcoin is not recognized as an official method of payment by the central bank, with the added threat that adopters "who lump it out". use will be treated ".

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It should be reiterated that the prohibitive position is not a general ban on cryptocurrencies in Vietnam or Indonesia and that "only" extends to their use as payment instruments.

Image from Shutterstock.

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