Where are Vietnamese buying bitcoin?

Vietnamese can buy bitcoin and other virtual currencies on some trading floors, but as Vietnam doesn’t recognize bitcoin as an official currency, Vietnamese are facing risks when conducting transactions.

VietNamNet Bridge - Vietnamese can buy bitcoin and other virtual currencies on some trading floors, but as Vietnam doesn’t recognize bitcoin as an official currency, Vietnamese are facing risks when conducting transactions.

The bitcoin price has increased by two times compared with September 15, and soared by 600 percent compared with the beginning of the year.

This explains why many Vietnamese still buy bitcoins despite the warning about risks.

They are also buying bitcoins because they hope it will be recognized in Vietnam, though the central bank has been called on to prohibit it. The current laws do not recognize bitcoin as a currency with payment function, but do not prohibit the trading and possessing of bitcoin.

Those who want to sell/buy bitcoin will make offer on social networks. If someone finds the offer reasonable, the two parties will meet to discuss the deals. In many cases, they conduct transactions via intermediaries.

Vietnamese can buy and sell bitcoin on markets held on the internet. The groups of people on social networks gather bitcoin buyers and sellers.

Users need a bitcoin wallet, which is free of charge, for transactions. Those who want to sell/buy bitcoin will make offer on social networks. If someone finds the offer reasonable, the two parties will meet to discuss the deals. In many cases, they conduct transactions via intermediaries.

Vietnamese can also buy and sell bitcoin on online trading floors. The floors act as prestigious intermediaries which bridge buyers and sellers.

There are two kinds of trading floors. The first one bridges the two parties, while the second acts as a fund where two parties can buy/sell certain amounts of bitcoins that the trading floors hold.

In general, to buy bitcoin with Vietnam dong, Vietnamese prefer the latter trading floor, because buyers don’t have to contact sellers, but can work directly with trading floors. However, the exchange rates on the floors are always higher than those on the bridging floors.

As for bridging floors, the exchange rate is determined by supply and demand, while trading floors only collect a fee for the intermediary role. Buyers receive bitcoins from sellers instead of trading floors.

Foreign floors also provide services to buy bitcoins via international payment cards such as Visa and MasterCard.

Bitcoin can also be traded globally through e-wallet apps designed for algorithm currencies. However, those, who access internet from Vietnam still cannot use e-wallets.

Many businesses and shops in Vietnam accept payment in bitcoin. A car shop in Cau Giay district in Hanoi permits clients to make payment in electronic currencies. A café on Vo Van Kiet street in HCMC accepts bitcoin. In 2016, a machine which looks like ATM but allows bitcoin transactions opened in HCMC.

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Chi Mai