State Bank of Vietnam Bans Cryptocurrencies

The apex bank of Vietnam; State Bank of Vietnam issued a ban on using digital currencies in the country. Starting from early 2018, a fine will be imposed if caught utilizing the cryptocurrencies. Bitcoin and other cryptocurrencies are already considered as illegal and their use will be prohibited on the basis of the new monetary law declared by the bank that will be in effect from first quarter of 2018. According to the law, State Bank of Vietnam issues or controls authorized payment methods.

The new monetary law is issued when Bitcoin is all set for new record highs in trading markets. Hence the law can affect utilizing virtual currencies in the country.

But the ban is expected to have little or no effect for users to use them in transactions. To solve the issue, a campaign can be organized by the government against centralized companies using digital currencies.The law has been unfortunate as financial sector’s innovations are restrained.

But the law is an action by the government to restrict countries from scams and fraud involving the use of the digital currencies and is expected to be lifted in future when they can be proven.

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