Legal risks for doing cryptocurrency business in Vietnam without license (Part 3)

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Currently, the Government of Vietnam has not yet issued license to any investor wishing to do cryptocurrency business in Vietnam

In a press conference on monetary policy and banking operations in the first quarter of 2019. Mr. Nghiem Thanh Son, Deputy Director of Payment Department of the State Bank of Vietnam (SBV) verbally affirmed that the State Bank of Vietnam has not yet issued any license to any company wishing to do cryptocurrency business in Vietnam.

Running cryptocurrency business has been excluded by Vietnam in the Schedule of WTO Commitments, and in the absence of Vietnamese legislation on this kind of business, any investor wishing to do cryptocurrency business in Vietnam is requested to consult with and obtain the approval from various competent authorities in Vietnam, including Ministry of Planning and Investment, the Ministry of Finance, Ministry of Industry and Trade, the State Bank of Vietnam; and other relevant Ministry (if any) in accordance with clause dd, Article 10, Decree 118/2015/ND-CP .

Doing cryptocurrency business in Vietnam without license shall be subject to administrative sanctions in accordance with Vietnamese law. In particular, any investor doing cryptocurrency business in Vietnam without license shall be subject to an administrative penalty of VND 50,000,000 to VND 100,000,000 and the foreign exchange operations of the credit institution shall be suspended for 3 – 6 months ;

In addition, according to point h, Clause 1, Article 206, Criminal Code 2015 (amended and supplemented by Criminal Code 2017) on the offense against regulations of law on banking operations and banking-related activities, from 1st January 2018, anyone who commits acts including issuing, supplying or using payment instruments causing damage to property from VND 100,000,000 to under VND 300,000,000 shall be fined from VND 50,000,000 to VND 300,000,000 or imprisoned from 6 months to 3 years.

                                                                                                By: Vinh (Richard) | LinkedIn

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