Vietnamese government fines illegal Bitcoin trading site
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The firm claimed to have a license to trade the cryptocurrency, but was hit by a $1,750 fine. Vietnam’s information ministry has fined a company that claimed to be the first website to be certified to exchange bitcoin in Vietnam for illegal social networking and setting up an illegal site.
Bitcoin Vietnam, which is based in District 4, Ho Chi Minh City, received a VND40 million ($1,750) penalty from the Vietnam Radio, Television and Electronic Information Department under the Ministry of Information and Communications.
Nguyen Tran Bao Phuong, the legal representative for Bitcoin Vietnam, said they were looking into the charges.
The company is in a transition period, so its business registration code had been revoked before the decision was made, she said .
“Bitcoin Vietnam is a cryptocurrency exchange. We do not yet have a license to offer intermediate services, but we are not operating illegally. The company is closely following any new regulations about Bitcoin, and is willing to comply with any new law,” Phuong said.
The company opened in 2013 and is certified to buy and sell Bitcoin, according the company’s website.
However, in a recent interview, a representative admitted that the company’s license is only for “financial advisory” purposes.
Over the last four years, the company has launched a number of websites such as bitcoin.vn and vbtc.vn.
The State Bank of Vietnam does not recognise virtual currencies as a legal form of payment, and distribution or use of digital currencies is not protected by law.
Questions & Answers
Q.What is Bitcoin Vietnam's view on the charges against them?
What is Bitcoin Vietnam's view on the charges against them?
Nguyen Tran Bao Phuong, the legal representative, stated they are investigating the charges. She claims the company is not operating illegally and is closely following new regulations, willing to comply with any new law.
Q.Does Bitcoin Vietnam hold a valid licence for its exchange operations?
Does Bitcoin Vietnam hold a valid licence for its exchange operations?
No, the company does not have a license to offer intermediate services for cryptocurrency exchange. A representative admitted their existing license is only for financial advisory purposes, not for buying and selling Bitcoin.
Q.What is the official stance of the State Bank of Vietnam regarding virtual currencies?
What is the official stance of the State Bank of Vietnam regarding virtual currencies?
The State Bank of Vietnam does not recognise virtual currencies, including Bitcoin, as a legal form of payment. The distribution or use of digital currencies is therefore not protected by law in the country.
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