Countries around the world are talking about Bitcoin. Can Bitcoin’s Blockchain technology help them be faster and more efficient? Is Bitcoin used for criminal behavior? Is this something that can be taxed to benefit The State? New countries are coming into contact with it every day, and now Vietnam is weighing in with an official word of caution against its use in the small Asian-pacific country.
Not illegal but definitely not legal
Places like Russia are confused by Bitcoin but seem likely to ban it outright. Western nations have legal structures that will allow it and even make it taxable. According to Vietnam News , the Department of E-Commerce and Information Technology has also recommended that organizations and individuals should not make the transactions related to the kind of "virtual money.”
Dating back to 2014, the State Bank of Vietnam has stated that the possession, sale and use of "virtual money,” like Bitcoin or other altcoins, as an underlying asset class is very risky for the people and are not protected by law. The other coins mentioned may have proven to show little real world value, or have been tied to previous digital currency scams in the region, including names like OneCoin, SwissCoin, and GemCoin.
Of course, Vietnam’s central bank is not the first to come out publicly against a competing currency that they do not produce or manage. A similar warning has cropped up over the last two years in several countries. This usually is a prelude to some formal legalization about the legality of digital currency use, domestically. Generally, governments and central banks prefer to not have competition for the production and value of money within a given country.
“Domestic and international money transfer services in Kenya are regulated by the Central Bank of Kenya Act and other legislation. In this regard, no entity is currently licensed to offer money remittance services and products in Kenya using virtual currency such as Bitcoin,” said the Central Bank of Kenya in December of last year.
“Bitcoin has no legal status or regulatory framework. Thus, it poses a number of risks for those that would choose to transact with it such as the lack of guarantee of security, convertibility or value,” said Hlengani Mathebula, head of the group strategy and communications at the South African Reserve Bank in 2014 .
One in the Bitcoin community can take this as good news as well. Better for the local authorities to say “Use at your own risk” than that Bitcoin is illegal, in any way. BitConnect will keep our readers up to date on future announcements by central banks and governments in regards to the use of Bitcoin and other decentralized digital currencies.