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Good Morning, Vietnam: Central Banks Declares Crypto Illegal

What happened

Vietnam joins China and South Korea – the State Bank of Vietnam has declared digital currencies illegal. Anyone caught using the cryptocurrencies from 2018 will be fined or prosecuted.

Wait, can a bank do that?

In Vietnam, the government prefers to regulate all financial transactions through the central bank. The law which goes into effect in early 2018 says that the only authorized payment methods in the country are those issued or controlled by the State Bank of Vietnam. That way, they in fact ban bitcoin and other digital currencies.

Does it mean that I’m in trouble?

Technically, the ban won’t have much effect on individuals who want to use crypto. Although the centralized companies using digital currencies might be affected.

What can we learn from it

  • The ban is likely to prevent crypto innovation within the country – unfortunately, as the Bitcoin adoption in Vietnam has been on a rise
  • Outlawing digital currencies might push investors towards the alternatives which cannot be tracked back to individuals.
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