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State Bank of Vietnam prohibits cryptocurrencies

The Central Bank of Vietnam has declared the use of digital currencies in the country as illegal.

29.Oct.17 10:42 AM
By Daria Zaytseva


State Bank of Vietnam prohibits cryptocurrencies

The central bank also announced that it will impose a fine on someone caught using the cryptocurrencies starting early 2018.

Based on the new monetary law issued by the bank, which is planned to be put into effect during the first quarter of 2018, bitcoin and other virtual cryptocurrencies are already considered illegal and their use will be banned in the country. The law also states that the only authorized payment methods in the country are those that are issued or controlled by the State Bank of Vietnam.

The ban, introduced by the State Bank of Vietnam, occurs at a time when Bitcoin, the leading cryptocurrency, sets record highs in the trading markets. This is expected to affect the impact of the new law on the use of virtual currencies in the country. Nevertheless, it is certain that the ban on virtual currencies will not have much influence or will not affect people who want to use them in their transactions. The only thing the government can do is to launch a campaign against centralized companies that use digital currencies.

The decision of the central bank to declare cryptocurrencies as illegal is considered very unsuccessful, as it suppresses innovations in the financial sector. However, the law can be seen as a way of the government to imitate the actions of other countries around the world. It is expected that this ban can be canceled in the future if the fears of possible fraudsters associated with the use of digital currencies will be proved otherwise.

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