Vietnam’s Prime Minister is Analyzing Cryptocurrency Sanction

• Vietnam’s Prime Minister reportedly said that the country needs to study sanctions on virtual currencies.
• The Prime Minister discussed crypto regulation in the country.

On October 24, 2022, Pham Minh Chinh, the Prime Minister of Vietnam, commented on a Anti-Money Laundering draft at the discussion session. He said while having the discussion at the Government, the two types of opinions came out that were related to the regulation. He noted the transaction via cryptocurrency and anti-money laundering through this, which the country has not yet recognized.

How Vietnam’s Prime Minister See “Virtual Currency”

The Government of the Southeast Asian Country, Vietnam has decided to not include the virtual currency in the bill while submitting it to the National Assembly.

Even so, Pham Minh Chinh said that the digital currency is still in use and transacted while not recognized by the law. As he stated that “I am also very impatient about this place when I have not recognized it, but in fact people still trade.”

The Prime Minister further pointed out over the regulations that “It is necessary to study appropriate sanctions, and should assign the Government to make detailed regulations.”

In continuation, many National Assembly deputies also made the comment over the types of transactions that include virtual currencies besides the transactions in the cash, gold, or foreign currencies.

Others Opinion

Trinh Lam Sinh, Deputy Head of the Delegation in-charge of the Vietnam’s Economic Forum, further noted that lots of people involve in the virtual currency exchange, thus it can become a money laundering point to finance various crimes, like terrorist crimes.

Mr. Nguyen Manh Hung, Standing member of the Economic Committee also mentioned that, money laundering through virtual money is an experiential risk.

In correspondence, Dao Hong Van (Deputy of Hung Yen state) pointed out, if the revised Anti-Money Laundering Bill does not regulate virtual currency and its transactions, then “this will be a loophole for money laundering.”

Moreover, in the form of transactions through virtual currency, Mr. Nguyen Minh Duc, Deputy Chairman of the National Defense and Security Committee, said this form is like the trick of using online games. At which objects can take advantage, use dirty money to buy virtual currency, and proceed with the cash withdrawal.

However, keeping the risk of money laundering in mind, all the delegates proposed that the Anti Money Laundering Bill (Amended) must add regulations over virtual currency and transactions.

It can be seen that Vietnam may have a weak legal framework for owning, trading or using virtual currency but the adoption rate of all these currencies is among the highest worldwide. The country ranked second on the Global DeFi Adoption Index, just behind the United States.

Nancy J. Allen is a crypto enthusiast and believes that cryptocurrencies inspire people to be their own banks and step aside from traditional monetary exchange systems. She is also intrigued by blockchain technology and its functioning.

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