Illustrative image (Source: Internet) Hanoi (VNS/VNA) - The Ministry of Finance(MoF) has proposed to temporarily halt the import of bitcoin mining machines toimprove the management of bitcoin and cryptocurrency transactions.
According to the ministry’s report to theGovernment on cryptocurrency management, the bitcoin mining machine has notbeen mentioned in the list of forbidden imported goods, which has made it easyfor businesses to import the machine.
However, the ministry said the use of bitcoinmining machines has shown complications in management, with the potential to beused illegally as a currency or in other non-cash payment methods.
Cryptocurrency is considered an illegal non-cashpayment method in Vietnam. The use of virtual money as a means of payment isprohibited and will be handled according to the country’s legal regulations.
The MoF cited the example of a case in HCMCity to prove shortcomings in virtual money management. An organisationbased in the city, Modern Tech, reportedly duped 32,000 individuals in aninvestment of approximately 15 trillion VND (666 million USD) in two fraudulentdigital currency projects.
This forced State management agencies to havestrict solutions in place on the import of bitcoin mining machines, MoF said.
So far, the country has imported some 15,600bitcoin mining machines.
These were mainly imported into three major cities - HCM City, Hanoi and Da Nang. Last year alone, more than 9,300 machines wereimported, including 2,300 into Hanoi, some 7,000 into HCM City and theremaining into Da Nang.
In the first four months of the year, the countryimported more than 6,300 bitcoin mining machines, including 4,300 machines intoHanoi and 2,009 machines into HCM City.
Earlier, Prime Minister Nguyen Xuan Phuc askedthe State Bank of Vietnam (SVB), financial institutions and other organisationsproviding payment brokerage services to intensify inspections and promptlyreport suspicious cryptocurrency transactions.
PM Phuc issued Directive No 10/CT-TTg on thematter, following repeated warnings from relevant agencies on risks associatedwith Bitcoin and other cryptocurrencies, along with the threat thatcryptocurrencies can be used to finance crimes, such as money laundering,terrorism, tax evasion and fraud.
Meanwhile, cryptocurrency trading and investmentare on the rise, posing a threat to the stability of the financial market aswell as social order and safety due to the high risks involved.
The PM instructed the Ministry of PublicSecurity to join hands with the SBV and relevant ministries to detect andhandle any case of cryptocurrency being used for illegal payment, any activityconnected to money laundering and any terrorism-related activity sponsored viacryptocurrency.
The MoF has been asked to study the globalexperience to recommend solutions to counter initial coin offering. In additionto this, the ministry should work to reduce the import of bitcoin miningmachines.
The Ministry of Industry and Trade must channelefforts to address illegal activities related to the use of bitcoin to makepayment on e-commerce websites or applications. The Ministry of Justice isresponsible for completing a legal framework on the management and settlementof cryptocurrency or crypto assets.-VNS/VNA
