Vietnamese financial authorities have warned the public to be aware of the risks of investing in digital currency, according to reports published in local media.
Vietnam’s finance ministry said the country has yet to implement digital currency legislation and investors should be wary of getting involved in the unregulated digital currency market.
“Vietnam has not adopted any legislation relating 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 the country’s stock exchanges. In addition, there are only two exchanges authorized to trade in Vietnam, the Ho Chi Minh Stock Exchange and the Hanoi Stock Exchange, neither of which supports digital currencies.
In response to the legislative vacuum, the ministry said it has established a task force to study the digital currency sector and develop a policy approach to regulate the sector.
He also said there was a need to raise more cryptocurrency awareness among investors, in order to educate them about the risks of trading, as well as the risks of fraud and theft in digital currency wallets, exchanges and investment programs.
The ministry’s warning comes amid growing concern in Vietnam over the Pi network, an investment program that some have called a pyramid scheme.
Despite the popularity of the investment program in the region, local experts said it lacked the transparency one would expect from a legitimate digital currency investment opportunity.
The Vietnamese government has traditionally been hostile to digital currency, despite its support for the blockchain technology that underlies it.
Digital currency as a payment method was banned in the country in 2018, and local authorities have continued to urge residents to avoid digital currency since then.
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