According to a survey by Chainalysis, Vietnam's cryptocurrency market has grown by 881 percent year-on-year, ranking first out of 154 countries in the "Global Cryptocurrency Adoption Index 2021" ranking.
Fnancial product comparison website Finder.com has also published a survey report on the countries with the highest rates of using and owning cryptocurrencies. Accordingly, Vietnam is the leading country for the rate of cryptocurrency ownership. The report surveyed 42,000 people across 27 countries.
However, taking advantage of the explosion of cryptocurrencies, negative phenomena have appeared.
According to information on the website of the Ministry of Public Security, forms of foreign exchange investment (Forex) and binary options trading (BO) have potential risks of fraud and appropriation of asset.
In particular, Forex has been banned by many countries around the world. Regarding BO exchanges that have been publicly warned by the Ministry of Public Security, investors should avoid and not participate in transactions.
Multi-dimensional information about cryptocurrencies is increasingly dense in the media, and the common point of many projects is that they have all faced doubts about transparency, applicability in social life, etc.
In fact, in addition to fraudulent projects like BO/Forex, there are many cryptocurrencies that still receive the attention of many countries around the world, including Vietnam.
Vietnam still does not have a legal corridor to manage cryptocurrencies.
According to Vietnam’s monetary and banking regulations, bitcoin and other similar virtual currencies are not currencies and not a legal means of payment in Vietnam.
Therefore, the use of virtual currencies as a means of payment is not recognized and protected by Vietnamese law. Credit institutions are not allowed to use virtual currencies as a currency or means of payment when providing services to customers.
Owning, buying, selling and using cryptocurrencies as an asset is potentially risky for people and not protected by law. Therefore, the State Bank of Vietnam recommends that organizations and individuals should not invest, hold and perform transactions related to bitcoin and other similar virtual currencies.
A delay in issuing official legal regulations on managing cryptocurrencies will cause a rise in the risks of fraud and theft related to virtual assets, experts have warned.
The Ministry of Finance is studying the legal framework for managing cryptocurrencies on stock exchanges which would pave the way for legal cryptocurrency transactions in Vietnam.