Central Bank of Vietnam to ban Cryptocurrencies

The Central Bank of Vietnam to impose ban on Cryptocurrencies

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The State Bank of Vietnam acts as the country’s central bank. The eyes of the cryptocurrency community turned towards Vietnam, when the bank imposed to ban cryptocurrencies within the country. The bank notifies, there will be fines and punishments for those who use cryptocurrencies. The ban will be imposed from the beginning of 2018.

These new financial laws enacting from the beginning of 2018 by the State Bank already seems to be taking its toll. Some services within the country already consider Bitcoin and other cryptocurrencies to be illegal and prohibits the use of it. The state bank has authorized a set of payment methods for carrying out transactions. These payment methods issued and handled by the central bank will be the only legal transaction forms from 2018 onwards.

Effect of Vietnam’s decision to ban cryptocurrencies 

There are ongoing discussions on how the market value of digital currencies like Bitcoin will be affected after the imposed ban on Vietnam. Bitcoin is providing a high market value as the leading cryptocurrency in the trade market. The ban might have an effect on the performance of Bitcoin given the country stops all trade using cryptocurrencies. However, the ban will not impose directly on the people using these digital currencies within Vietnam. The only possible thing the government can do is to take legal action against companies dealing with decentralized digital currencies within the country.

To decision to ban cryptocurrency will have a negative impact on the financial sector of the country. This will lead to demotivate innovators and investors that would like to do ICO projects. Initial Coin Offering (ICO) is the process in which a company finds investors to fund their projects. The companies introduce new cryptocurrencies to the market for this purpose. It seems that the Vietnamese government is trying to be in line with other countries which have imposed less or similar bans on digital currencies. There is a chance for the ban on cryptocurrencies to lift in future. This will be when there are more regulations and methods to handle and control digital scams relating to cryptocurrencies.

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