Vietnam Securities Regulator Increasing Oversight of Cryptocurrency Industry
The Vietnamese Securities Regulator is looking to adopt stricter measures that will restrict cryptocurrency trading within the country.
The country’s official news outlet VietNam News reported on Wednesday that the State Securities Commission (SSC) issued a strict warning to firms not to engage with activities linked to cryptocurrencies.
This follows an outright ban on crypto trading in the country, which has been in place since April. Vietnam’s government prohibited any cryptocurrency-based transactions as part of the Prime Minister’s Directive, on April 11. The crackdown was later extended to the importation of crypto mining hardware following a recommendation by the country’s central bank.
The harsh regulation was partly a response to two major ICO scams that took place last year. Around $660 million was defrauded from over 30,000 Vietnamese citizens. The government has also insisted that it wants to reduce the risk of money laundering, terrorism financing, trade fraud and tax evasion.
This most recent ruling will affect public and private investment funds, as well as securities companies, all of whom may have previously been able to engage indirectly with crypto activities in one way or another.