Thursday,  Nov 15, 2018,13:21 (GMT+7) 0 0
Experts give advice on cryptocurrency management
The Saigon Times Daily
Tuesday,  Sep 18, 2018,10:49 (GMT+7)

Experts give advice on cryptocurrency management

The Saigon Times Daily

A collection of Bitcoin tokens. International experts propose Vietnam work out reasonable solutions to manage digital assets and cryptocurrencies - PHOTO:REUTERS

HCMC - Vietnam should work out reasonable solutions to manage digital assets and cryptocurrencies before developing a strict legal framework, Nguoi Lao Dong newspaper reported, citing international experts at a seminar held by the Ministry of Justice on September 16.

At the seminar under the theme “Virtual assets and cryptocurrencies: international experience and legal issues of Vietnam,” Minister of Justice Le Thanh Long said Vietnam’s legal framework for cryptocurrency management has yet to be completed.

However, digital assets and cryptocurrencies are popular in the local market. Imports of cryptocurrency mining equipment are on the rise, and many cryptocurrency-related scams have been detected.

A group of experts from the ministry has learned from other countries to develop a legal framework on the management of cryptocurrencies, Long remarked.

Kenneth Yeo, a Singaporean expert, suggested State management agencies should amend regulations on money laundering and tax evasion prevention as well as investor identification, and then develop tougher regulations on digital asset and cryptocurrency management.

Chionh Chye Kit, founder and CEO of Traceto.io, a decentralized know-your-customer platform, told the seminar that the World Bank has warned countries of the risks of virtual assets and cryptocurrencies. Countries should, at the same time, have measures to protect consumers.

Policymakers must assess both the positives and negatives of cryptocurrencies to present solutions to manage them, said Nicholas Dimitrion, legal director of HybridBlock, an all-in-one cryptocurrency trading system.

Alice Chen, strategy director of the Singapore Cryptocurrency and Blockchain Association, spoke highly of the importance of consulting with the relevant agencies, especially private enterprises.

She shared the experience of Singapore in managing virtual assets and cryptocurrencies, noting that the country does not have any official regulations on cryptocurrencies but has closely controlled transactions of cryptocurrencies and trading floors to understand the pros and cons of this kind of currency and add regulations on cryptocurrency management to the laws on money laundering and fraud prevention.

At present, a large number of Vietnamese investors have stopped their investment in cryptocurrencies after suffering losses. The price of a bitcoin unit has plunged from US$20,000 late last year to US$6,000-7,000 at present.

In addition, the number of Vietnamese investors on large cryptocurrency trading floors, such as Bitrex, Coinbase and Bitfine, has plummeted as well.

After the State Bank of Vietnam ordered the enhancement of control over cryptocurrency-related transactions, some commercial banks, such as Vietnam International Bank and Vietnam Public Bank, announced the ban of cryptocurrency transactions, including deposits, money withdrawal and transfer and card services within their networks.

Some other banks have also asked their staff not to trade, exchange or invest in cryptocurrencies and not to use the banks’ services to process cryptocurrency transactions.

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