SSC recommends businesses not to issue, trade and broker cryptocurrencies

Public companies, securities companies, fund management companies and securities investment funds must not engage in illegal activities related to cryptocurrencies.

Vietnam’s State Securities Commission of Vietnam (SSC) has previously issued a notice regarding Bitcoin and other cryptocurrencies. This is the next notification issued on January 29th, 2018 and based on the Prime Minister’s Directive No. 10 / CT-TTg, Dated  April 11th, 2018 on strengthening the management of Bitcoin-related activities and other cryptocurrencies.

Accordingly, the SSC required public companies, fund management companies, securities investment funds and securities companies must not engage in illegal cryptocurrencies, and they must adhere to all applicable regulations concerning anti-money laundering.

Earlier this week, the SSC is to have announced that financial and investment activities in the  financial technology services (fintech), including cryptocurrency, ICO and other products related to Vietnam stock market. Specifically:

Currently, some companies in the market are doing business in Fintech including cryptocurrency, ICO and other products such as crowdfunding, peer-to-peer lending, blockchain, etc. These are new products that have not yet been legally regulated and have hidden many risks.

In the problems, the SSC announced that:

  1.   The SSC advised investors to be cautious when investing in the new products to limit possible losses,
  2.   The SSC required public companies engaging in the financial technology services must fully adhere all applicable regulations concerning issuance, capital mobilization, disclosure of information for the new products,

3.   While waiting for the competent authorities to issue the legal framework for these new products, the SSC requires that securities business organizations must not engage in advisory, brokerage, issuance activities, and cryptocurrency transactions as well as other financial technology products and adhere to all the legal regulations concerning anti-money laundering.

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According to the report, the SCC explains that its ban is in response to a directive [PDF] by the office of Nguyen Xuan Phuc, Vietnam’s Prime Minister on April 11 ordering several ministries, law enforcement authorities and the country’s central bank to strengthen the management of “activities related to bitcoin and other cryptocurrencies.”

That particular directive was a direct consequence of an unprecedented nationwide scam involving two fraudulent initial coin offerings (ICOs) that swindled 32,000 Vietnamese citizens out of a massive $660 million.

At the turn of 2018, a new legal framework came into effect outlawing cryptocurrency’s usage for payments in Vietnam. The prohibitive stance also sees adopters facing criminal prosecution with fines up to $9,000.

Last week, the State Bank of Vietnam, the country’s central bank, agreed with a government ministry’s proposal to suspend imports of Application-specific integrated circuit (ASIC) cryptocurrency mining equipment.

VCF.Today – Vietnam Crypto Forum

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