Vietnam Improves Measures on Crypto Due to Scam Threat

The Scam is one of the Biggest in the Industry

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Nguyen Xuan, the prime minister of Vietnam, urged the government and also all the financial institutions to ensure that they toughen the “management of activities which are related to Bitcoin and also all other cryptocurrencies.” This was through a government directive and regulation which was issued on 13th April. This was due to the current situation of ICO scam in the country.

“Cryptocurrency investment and trading and raising money through initial coin offerings are evolving in a more complicated manner,” this was the warning of the government. Therefore the government added that the developments might further pose risks to the national social order and also finance.

Therefore according to the reports of Reuters during this week, he gave the message that the prime minister had given an order to the Vietnam state bank to ensure that all the crypto related financial services have been cracked down. Additionally, the prime minister told the justice ministry to make sure that they complete the set legal framework for virtual asset and currency management.

Therefore this move by the government was just after the reports of one of the biggest crypto fraud in their history if this is then proven to be true. This is due to the allegations that Vietnam modern tech was involved in the swindle of round 32,000 investors out of around 15 trillion dong. This is around $658 million in ICO which involved the sale of Pincoin and Ifan. These are the two ECR-20 tokens.

On April 8 the lack of the hard currency payout then caused a demonstration to happen just outside the modern tech Ho Chi Minh City headquarters. According to Reuters, Ho Xuan Van had switched off his mobile phone in 11th April.

Le Dong Phong who is Ho Chin Minh City chief of police made a statement and declared that they were awaiting the victims to subject themselves to filling the official accusations before they could launch the investigation.

He then emphasized;

“All cryptocurrencies and transactions in cryptocurrencies are illegal in Vietnam.”

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