Financial authorities in Vietnam have issued a warning to the public to be aware of the risks of investing in digital currency, according to reports emerging in local media.
The Ministry of Finance of Vietnam said the country has yet to implement any legislation around digital currency, and investors should be wary of getting involved in the unregulated digital currency market.
“Vietnam has not adopted any legislation related to the issuance, trading, and exchange of virtual currencies and virtual assets.”
According to the ministry, digital currencies are not a form of security, and cannot be traded on exchanges in the country. Furthermore, there are only two exchanges permitted to trade in Vietnam, Ho Chi Minh Stock Exchange and Hanoi Stock Exchange, neither of which support digital currencies.
In response to the legislative gap, the ministry has said it has established a working group to research the digital currency industry, and to develop a policy approach to regulating the sector.
It also said that there was a need for greater awareness of cryptocurrency amongst investors, in order to educate against the risks of trading, as well as the risks of fraud and theft from digital currency wallets, exchanges and investment schemes.
The warning from the ministry comes against a backdrop of growing concern in Vietnam over the Pi Network, an investment scheme some have labelled as a pyramid scheme.
Despite the popularity of the investment scheme in the region, local experts have said it lacks the transparency one would expect from a legitimate digital currency investment opportunity.
The government of Vietnam has traditionally been hostile towards digital currency, despite offering its backing for the blockchain technology which underpins it.
Digital currency as a form of payment was outlawed in the country back in 2018, and local authorities have continued to urge residents to avoid digital currency ever since.
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