Securities activities involving cryptocurrencies banned

Public companies, security companies, fund management companies and securities investment funds are not permitted to engage in any issuance, transaction or brokerage activities related to cryptocurrencies.

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The prohibition follows an announcement issued by the State Securities Commission (SSC) on July 23, which regulates the management of issuance, transaction and brokerage activities related to cryptocurrencies.

The announcement was issued based on the Prime Minister's Directive No.10/CT-TTg dated April 11, 2018, on strengthening the management of activities related to Bitcoin and other digital currencies and the Notice of the SSC issued on January 29, 2018, concerning investment and business activities in the area of financial technology.

Accordingly, the SSC has requested that the aforementioned companies do not carry out activities involving the issuance, transaction and brokerage of cryptocurrencies, while obeying the legal regulations on anti-money laundering.

Earlier in April, the State Bank of Vietnam also banned commercial banks and intermediary payment service providers from making transactions involving cryptocurrencies, warning that such activities may increase the risks of money laundering, terrorism financing, trade fraud, and tax evasion.