Asia Legal

In the first article, we answered the question “Is Forex trading regulated under the laws of Vietnam?”. Accordingly, Forex business is not regulated under the laws of Vietnam and the competent authority in Vietnam, i.e., the State Bank of Vietnam has not, so far, issued any further guidance or instruction on such kind of business in Vietnam. Today, in the second article, we will discuss the legal risks in doing Forex business in Vietnam without license. Doing Forex business in Vietnam without license: legal risks Doing Forex business has been excluded by Vietnam in the Schedule of WTO Commitments. Since Vietnamese legislation does not have specific regulations on this kind of business, any investor wishing to do Forex business in Vietnam must 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...

Further to our article on Cryptocurrency, today we will discuss another related topic which is increasingly popular in emerging markets, including Vietnam: Forex business/ trading. In the first part of this Article, we will answer the question: “Is Forex trading regulated under the laws of Vietnam?” With Forex trading, the Traders attempt to profit by buying and selling currencies by actively speculating on the direction currencies which are likely to fluctuate in the future. On the other hand, investing in foreign exchange trading is investing in the difference between the exchange rate of a pair of one currency or the price fluctuations of other commodities. It means Forex trading is not about buying and selling foreign exchange to serve the needs of using foreign exchange but rather to speculate on price fluctuations. However, the applicable laws of Vietnam do not provide any clauses on price fluctuation speculation as a legal foreign exchange activity. According to the Schedule of...