Warning of major risks for cryptocurrency players in Vietnam

Market updates show that Bitcoin prices are soaring, sometimes thousands of dollars a day. In Vietnam, the prices of "coins" including Bitcoin follow the world, the difference between buying and selling is up to tens of millions of VND/Bitcoin.

"Hundreds of digital currency exchanges from forums, websites to Facebook, bringing with them millions of accounts of players of various digital coins, including Bitcoin, are creating a hot atmosphere like a summer day. I don't understand what is happening in the digital currency market," said technology expert Le Huy Hoa (Hanoi).

Terrible elasticity

Accessing an exchange, the Bitcoin selling price was at 236 million VND/Bitcoin (rounded), then one hour later, it jumped to 251,037,625 VND/Bitcoin.

Notably, the fluctuations are not only in the selling price and buying price but also in the buying and selling range.

For example, the selling and buying prices of each Bitcoin one hour ago were 251,037,625 VND - 246,055,865 VND, then one hour later they were: 249,470,000 VND - 245,427,553 VND.

Or, less than half an hour later, the price was: VND 249,381,668 - VND 244,035,000.

Even on floor A, the price is the same as above, but at the same time on another floor, the selling and buying prices are 239,276,000 VND - 223,327,400 VND respectively. Bitcoin price fluctuates very complicatedly in terms of amplitude, level within a floor and comparison between this floor and other floors.

Bitcoin virtual currency

Mr. Le Huy Hoa added that in the current market, the virtual currency world has an extremely bustling life, almost anyone can participate without encountering any barriers.

The reality is exactly as this expert predicted. Just visit any exchange, fill in some basic information such as full name, email, phone number... and you can participate through a few simple steps: register to own an account/deposit VND and proceed to buy Bitcoin.

After purchasing, the exchange owner will deposit Bitcoin into the account; players start buying/selling and participate more deeply in other activities: contributing money to someone in the form of Bitcoin investment trust. The way of entrusting is also extremely simple: one person calls for contributions, other investors contribute, but it is worth noting that among those who contribute, there are also "decoys" in the same group, in the same boat.

After collecting money, the group leader even commits to paying interest and after a certain period, if they do not want to continue investing, they can withdraw.

With the method of taking money from the "trustee" later and paying interest to the "trustee" earlier, this form is exactly like the capital contribution and securities and real estate investment trust fraud cases that have had to go to court in the past.

It is not clear whether it is "money" or "goods"

Currently, around the issue of virtual currency managementIn a recent announcement, the State Bank cited the Penal Code and related documents to affirm that it does not recognize Bitcoin and other digital currencies as means of payment and therefore, any act of payment using Bitcoin in the economy is considered a violation of the law and can be prosecuted.

At the same time, the fine for Bitcoin payment transactions on January 1, 2018 can be up to 200 million VND.

However, in reality, there are other issues that are difficult for management to address. That is, there is currently no clear legal concept that "coin" in general and Bitcoin in particular are "money" or "goods".

A Bitcoin exchange has made an argument to reassure the market: Bitcoin is not money, not a means of payment, so it is not regulated by current legal documents. They are willing to list Bitcoin in VND so they do not violate any laws, so players can rest assured.

In parallel, virtual currency activities also exist in many other forms hidden under economic contract transactions such as "investment trust" and "capital contribution". In these contracts, investors provide countless reassurance about risks such as "allowing to withdraw principal when not wanting to continue investing".

However, once a considerable amount of money has been "held", the risk is that the leader of the group may flee. The case in which the Bac Giang Provincial Police Department arrested a group on November 27 was similar.

According to a lawyer, with contracts like the one mentioned above, it is impossible to charge the group leader and participants with any crime. Only when the authorities prove that the leader has absconded with the money can they be charged with a criminal offense. But by then, it will be too late.

Expert Le Huy Hoa is concerned that the virtual currency market is experiencing fraudulent and deceptive forms such as multi-level marketing. The most dangerous thing is that young people, including students, spend most of their time "farming coins", neglecting their studies, and when they lose, they fall into debt.

According to Tien Phong Newspaper