The State Securities Commission (SSC) has required relevant companies and funds not to engage in any issuance, transaction or brokerage activities related to cryptocurrencies.

The central bank also banned commercial banks and intermediary payment services providers from making transactions involving cryptocurrencies.

Under an announcement released early this week, SSC banned public companies, securities companies, fund management companies and securities investment funds from taking part in the activities, and required them to obey legal regulations on anti-money laundering.

According to SSC, the announcement was issued based on the Prime Minister’s Directive No 10/CT-TTg dated April 11, 2018 on strengthening the management of activities related to bitcoin and other cryptocurrencies. The use of such currencies as a means of payment is prohibited in Vietnam.

Earlier in April, the State Bank of Vietnam also banned commercial banks and intermediary payment service providers from making transactions involving cryptocurrencies, warning that such activities may increase the risks of money laundering, terrorism financing, trade fraud and tax evasion.

To improve the management of cryptocurrencies in Vietnam, local relevant ministries, including the ministries of Finance and Industry and Trade, and SBV, have also agreed to suspend the import of cryptocurrency mining machines.-VNS/VNA