Business

Experts worry over e-money’s red-hot growth

Experts voiced real concern over safety and legal status of e-money since Bitcoin, a form of cryptography-based e-money, is believed to potentially cause risks for users due to its highly volatile value.
Experts worry over e-money’s red-hot growth ảnh 1Experts worry over e-money’s red-hot growth. (Photo: kienthuc.net)

Hanoi (VNA) – Experts voiced real concernover safety and legal status of e-money since Bitcoin, a form ofcryptography-based e-money, is believed to potentially cause risks for usersdue to its highly volatile value.

According to economist Prof. Ha Ton Vinh, Bitcoin hasseen red-hot growth, rapidly rising from about 13 USD in 2013 to over 5,000 USDat the present. It can go up to 10,000 USD in the future, Vinh said.

After Bitcoin split into two derivative digitalcurrencies, the classic Bitcoin and the Bitcoin Cash on August 1, its valuecontinuously hit new records.

The usage of the virtual currency has not been legalizedin many countries, Vinh explained, citing China as an example. The neighbouringcountry has put a ban on fundraising through initial coin offering (ICO)activities, he said.

The State Bank of Vietnam has declared the ownership,trading and use of Bitcoin and other virtual money as an asset illegal andgiven regular warnings about potential risks associated to e-money.

Experts are also worried that e-money could be a tool forcrimes, such as money laundering, drug trafficking, and tax fraud while thedigital money is at a high risk of being attacked, stolen or disrupted intransaction.

In that context, the Prime Minister has approved a planto develop a legal framework for the e-money management. The Minister ofJustice was assigned to prepare legal documents related to virtual assets andmoney while the Ministry of Finance is responsible for issuing regulations ontaxes on e-money in June, 2019.-VNA
VNA
#e-money #legal status #Bitcoin #volatile #Prof. Ha Ton Vinh #red-hot growth #digital currencies #virtual currency #initial coin offering #ICO #potential risks #money laundering #VIetnam business #Vietnam news #Vietnamplus
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