The State Bank of Vietnam will work with the public security forces toseize operators of the Vietnam real-time bitcoin exchange (VBTC)that was launched on July 9.
Head of the SBV PaymentDepartment Bui Quang Tien told the local press that his department,supposed to manage electronic money, did not grant any licence to theexchange.
"Bitcoin and other virtual currencies are not legal tender or permitted means of payment in Vietnam ," Tien added.
The VBTC was jointly founded by the Bitcoin Vietnam Co. Ltd and theIsraeli Bitcoin Exchange Bit2C earlier this year and launched betatesting in June. It allows unlimited bitcoin purchases in Vietnam .
VBTC CEO Nguyen Tran Bao Phuong, quoted by thesaigontimes.vn,said that the company was discussing with the concerned authoritiesabout the benefits of bitcoins. She said that the benefits that "thisadvance in monetary technology" would bring about were irrefutable,albeit the Government has to work harder to manage it.
Phuong said that she was ready to cooperate with the Government to prevent bitcoin-related crimes.
"If the Government does not accept bitcoins, formulating a law banning them would be very difficult," Phuong said.
Many countries such as Thailand , Russia , France , China and Norway do not recognise bitcoins as legal currency.
An official statement, dated February 27, by the SBV said that the useof bitcoins was illegal. The document says: "All bitcoin exchanges thatallow users to trade anonymously, therefore, can be used to launderdirty money, sell drugs, hide from paying taxes, exchange and pay forillegal activities."
Services hosting bitcoins have been shownto be at high risk of being hacked, stolen, or have their databaseexchanges and exchanges stopped.
At the beginning of 2014, thevalue of the bitcoin fell significantly when two of the biggest bitcoinexchanges in the world, Mt. Gox and BitStamp, temporarilydisallowed customers from withdrawing their money due to technicaldifficulties.
The US government also arrested foursuspects for illegal activities connected to bitcoins. On February 25,Mt. Gox closed down suddenly and hundreds of millions of dollarsworth of bitcoins were stolen.
Due to its fluctuating natureand the complications that can occur within a short time, the bitcoinis, therefore, seen as a bubble and is unpredictable and dangerous forinvestors.
It is not regulated by any institution or countryworldwide. Therefore, bitcoin users have no legal protection and have tobear the losses arising from its volatility themselves.
Thus,the central bank has warned organisations and individuals not to investin bitcoins, keep any bitcoins, use services connected to them and othercryptocurrencies.-VNA
Head of the SBV PaymentDepartment Bui Quang Tien told the local press that his department,supposed to manage electronic money, did not grant any licence to theexchange.
"Bitcoin and other virtual currencies are not legal tender or permitted means of payment in Vietnam ," Tien added.
The VBTC was jointly founded by the Bitcoin Vietnam Co. Ltd and theIsraeli Bitcoin Exchange Bit2C earlier this year and launched betatesting in June. It allows unlimited bitcoin purchases in Vietnam .
VBTC CEO Nguyen Tran Bao Phuong, quoted by thesaigontimes.vn,said that the company was discussing with the concerned authoritiesabout the benefits of bitcoins. She said that the benefits that "thisadvance in monetary technology" would bring about were irrefutable,albeit the Government has to work harder to manage it.
Phuong said that she was ready to cooperate with the Government to prevent bitcoin-related crimes.
"If the Government does not accept bitcoins, formulating a law banning them would be very difficult," Phuong said.
Many countries such as Thailand , Russia , France , China and Norway do not recognise bitcoins as legal currency.
An official statement, dated February 27, by the SBV said that the useof bitcoins was illegal. The document says: "All bitcoin exchanges thatallow users to trade anonymously, therefore, can be used to launderdirty money, sell drugs, hide from paying taxes, exchange and pay forillegal activities."
Services hosting bitcoins have been shownto be at high risk of being hacked, stolen, or have their databaseexchanges and exchanges stopped.
At the beginning of 2014, thevalue of the bitcoin fell significantly when two of the biggest bitcoinexchanges in the world, Mt. Gox and BitStamp, temporarilydisallowed customers from withdrawing their money due to technicaldifficulties.
The US government also arrested foursuspects for illegal activities connected to bitcoins. On February 25,Mt. Gox closed down suddenly and hundreds of millions of dollarsworth of bitcoins were stolen.
Due to its fluctuating natureand the complications that can occur within a short time, the bitcoinis, therefore, seen as a bubble and is unpredictable and dangerous forinvestors.
It is not regulated by any institution or countryworldwide. Therefore, bitcoin users have no legal protection and have tobear the losses arising from its volatility themselves.
Thus,the central bank has warned organisations and individuals not to investin bitcoins, keep any bitcoins, use services connected to them and othercryptocurrencies.-VNA
