Bitcoin Deemed Illegal in Vietnam

While some countries put a lot of faith in cryptocurrencies and are actually interested in launching their very own national digital currencies, other do not seem to share the same idea. In fact, some governments have not recognized bitcoin as a legal currency. This is the case of Vietnam.

In fact, the central bank of the country has decided to adopt some new laws that ban the use and issuance of bitcoin as a legal tender. This means that the digital currency cannot be used in Vietnam. The announcement was made by Vietnam's State Bank, which said that bitcoin is not a legal form of payment.

The central bank refused to include bitcoin among the possible non-cash payment means that have received approval. Of course, all cryptocurrencies are included in this category, meaning that according to the law they cannot be used as legal forms of payment.

However, that is not all. Given that the law does not recognize bitcoin and other cryptocurrencies, everyone using them risks prosecution.

Users of bitcoin and cryptocurrencies risk prosecution

According to a notice previously issued by Vietnam's Central Bank, all adopters of cryptocurrencies who are part in activities such as usage, issuance and provision of bitcoin, among other digital currencies, could face legal consequences as these activities are not legal.

“[A]s of January 1, 2018, the act of issuing, using, or using illegal means of payment (including bitcoin and other similar virtual currency) may be subject to prosecution. in accordance with the provisions of clause 1 (h) of Article 206 of the Penal Code 2015 (as amended and supplemented in 2017).”

The Central Bank's notice also indicated that "the use of bitcoin and other similar virtual currencies as means of payment is prohibited in Vietnam."

Since the ban includes all operations related to cryptocurrencies, it means that mining or exchanges were also outlawed. Initially, those who break these requirements could face fines, after which prosecution may follow.