Ethereum Watch

The State Securities Commission (SSC) in Vietnam has reportedly banned financial companies from using cryptocurrency.

According to an announcement made by the SSC earlier this week, and reported by the government-affiliated English-language newspaper Viet Nam News, the country’s securities regulator has forbidden public companies, securities companies, fund management companies, and securities investment funds from engaging “in any issuance, transaction or brokerage activities related to cryptocurrencies.”

This ban is the latest in a series of government actions after two massive ICO scams perpetrated by Vietnam-based Modern Tech. In April, Prime Minister Nguyễn Xuân Phúc issued a directive to several different government agencies urging them to take a more active role in enforcing rules and regulations involving cryptocurrency.

In response to the prime minister’s April directive, the State Bank of Vietnam (SBV) banned commercial banks and payment service providers from completing crypto transactions over fear of money laundering, terrorism financing, and tax evasion.

Also in response to the Modern Tech fraud, Vietnam’s deputy prime minister, Trịnh Đình Dũng, instructed the Ministry of Industry and Trade (MoIT), Ministry of Finance (MoF), SBV, and other agencies to study the import of cryptocurrency mining machines into the country.

As a result, last week the SBV and MoIT implemented a temporary ban on all crypto mining hardware.

Even prior to the Modern Tech fraud, Vietnamese officials didn’t seem too keen on crypto. As far back as October 2017, the SBV issued a blanket ban on the use of cryptocurrency as a means of payment.

Those pondering the future of crypto in Vietnam may have answers soon. Prime Minster Nguyễn Xuân Phúc recently approved a plan to review the country’s agenda on cryptocurrency regulations.

Nathan Graham is a full-time staff writer for ETHNews. He lives in Sparks, Nevada, with his wife, Beth, and dog, Kyia. Nathan has a passion for new technology, grant writing, and short stories. He spends his time rafting the American River, playing video games, and writing.

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