Virtual currencies are not lawful means of payment, according to SBV, therefore, "as of January 1, 2018, the act of issuing, providing, and using illegal means of payment (including bitcoin and other virtual currencies) may be subject to prosecution in accordance with the provisions of Article 206 of the Penal Code 2015," SBV said in a statement released on October 28.
Virtual currencies are not lawful means of payment, said the SBV.
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Previously in 2016, SBV has submitted to the government Decree No.80 on modifying clauses in Decree No.101 (2014) on non-cash payments; Decree No.96 (2014) on providing administrative penalties in the banking sector and monetary transactions.
In the first month of January, Deputy Minister Vuong Dinh Hue requested the Ministry of Justice to co-operate with SBV to finalize the legal framework on virtual currencies such as bitcoin and finish the compilation of legal documents in conformity with Decision No.1255 dated 2017. Afterwards, the Ministry of Justice will have to collect opinions from relevant ministries.
Virtual currencies, especially bitcoin, have sparked a worldwide fever. In Vietnam, the bitcoin drew significant market attention despite experts' warning about its risks and the lack of a management framework. At present, the Ministry of Justice is reviewing existing laws on the management of virtual assets and currencies in Vietnam.
As a ministry-level body under the administration of the government responsible for managing monetary policies, supervising financial institutions and the country's foreign reserves, SBV urged citizens and enterprises to restrain from making transactions in bitcoin and other cryptocurrencies. Given their extreme volatility and lack of regulation, cryptocurrencies in general and bitcoin in particular carry potential risks to investors. On the other hand, as claimed by SBV, bitcoin transactions are anonymous and can be used for money laundering, drug trafficking, tax evasion, and illegal payments.
Currently, the market capitalization for all cryptocurrencies reached US$393 billion, while the bitcoin market capitalization stands at US$ 141 billion, having deflated from the record high of US$320 billion witnessed last December, according to the coinmarket.com.
As of present, bitcoin is valued at nearly US$8,393 per coin.
