Vietnam swears to restrict cryptocurrency regulations while authorities are investigating an alleged multi-million-dollar fraud in the country, where digital units are traded in a fuzzy and unregulated market. A company in Vietnam, Modern Tech Jsc, has been accused of scamming $ 660 million from tens of thousands of people who bought iFan and Pincoin cryptocurrencies, according to state media. The Ho Chi Minh City-based company pledged to pay clients monthly interest - and more if they could attract other customers - but have been slowly restoring them as the value of iFan and Pincoin slumps, reported VNExpress . City authorities have been asked to investigate. Paying cryptocurrency is illegal in Vietnam, where they are not recognized as a legitimate soft central bank. However there is currently no law that clearly prohibits asset assets such as Bitcoin and Ethereum.
A directive signed by Prime Minister Nguyen Xuan Phuc on Wednesday called for new rules to “strengthen the management of activities related to cryptocurrencies”.
Investing and trading the currencies is “increasingly complicated and threatens to affect the stability of the market, social order… (and) can pose great risks to organisations and individuals involved”, the new directive said.
It warned financial institutions against accepting the currencies and said authorities would “detect and handle” those dealing in the illegal currency.
A cryptocurrency investor in Vietnam said he may consider moving business elsewhere after the announcement.
“Since the government wants to tighten regulations on cryptocurrency, I may not invest in cryptocurrency in Vietnam, maybe… in other countries,” he told AFP, asking not to be named.
Vietnam said last year it would consider developing a legal framework to manage cryptocurrencies and digital assets as they increase in popularity in the country.
Bitcoin and other cryptocurrencies operate independent of governments and banks.
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