Crimes related to virtual currency transactions

Despite many warnings from authorities, virtual currency is still flooding into Vietnam. Worryingly, virtual currency transactions have many risks, including the risk of property fraud and money laundering; and tend to spread to suburban and rural areas.

Faced with the above situation, the leaders of the General Department of Police continue to issue recommendations to the people as well as emphasize propaganda work and the fight against crimes related to virtual currency transactions.

Lieutenant General Tran Van Ve, acting Director General of the General Department of Police (Ministry of Public Security) said that according to current Vietnamese laws on currency and banking, people and organizations are not allowed to use Bitcoin or other virtual currencies as a currency.

Owning, buying, selling, and using virtual currency poses many risks to people and also poses the risk of crimes such as fraud, property appropriation, money laundering, etc.

Therefore, the Acting Director General of the General Department of Police recommends that organizations and individuals should not invest, hold, or conduct transactions related to Bitcoin and other similar virtual currencies. The police force will increase propaganda; fight and strictly handle crimes related to virtual currency transactions.

Bitcoin virtual currency.

Currently in Vietnam, there are many financial floors using Bitcoin virtual currency such as Airbitclub, Bitkingdom, BMW... Some financial models using Vietnamese currency operate similarly such as M5, G5, Ex101, sm99, srow...

The common point of the exchanges is that they accept financial support through Bitcoin, operating according to a multi-level model, taking money from later people to pay earlier people. In essence, it is a disguised multi-level, offering a trick of huge interest rates from 30-80%/year. The form of virtual currency trading in Vietnam takes place spontaneously, individuals buy and sell virtual currencies without registering with any state management agency.

Through professional measures, the police agency determined that all server systems that could provide electronic codes were located outside of Vietnam's territory, so it could only handle those who were identified as having committed the crime of fraud and appropriation of property, or violating regulations on the use of computer networks.

During the course of the investigation, the police arrested and prosecuted many "henchmen" in Vietnam, but they themselves were victims of Bitcoin fraud. The police also dismantled a number of virtual currency mobilization lines that committed fraud and property appropriation.

Some cases include C50 - the Ministry of Public Security in coordination with Dong Nai Provincial Police, which dismantled a high-tech capital mobilization ring with an amount of money appropriated up to 140 billion VND, and arrested the ringleader Nguyen Minh Phuong (39 years old, residing in Bien Hoa city, Dong Nai province), along with two accomplices.

The Investigation Police Agency - Bac Tu Liem District Police (Hanoi) has arrested 3 subjects and filed a case, handling violations related to the Boss-Bitcoin.com multi-level network.

In Nghe An, authorities discovered that a number of individuals had organized a seminar on virtual currency at Phuong Dong Hotel with the participation of 250 people...

According to current laws on currency and banking, Bitcoin (and other similar virtual currencies) are not currency and are not legal means of payment in Vietnam. Since February 2014, the State Bank has affirmed that Bitcoin is not currency and is not legal means of payment in Vietnam. At the same time, it warns owners, buyers, sellers, and users of virtual currencies that are not protected by Vietnamese law.

According to a recent announcement by the State Bank of Vietnam on October 28, 2017, the issuance, supply, and use of Bitcoin and other similar virtual currencies as a means of payment is prohibited in Vietnam. From January 1, 2018, the issuance, supply, and use of illegal means of payment (including Bitcoin and other similar virtual currencies) may be subject to criminal prosecution.

At the National Assembly's question-and-answer session on the afternoon of November 16, regarding the virtual currency Bitcoin, State Bank Governor Le Minh Hung said that in the world, some countries absolutely prohibit Bitcoin transactions. Some countries do not prohibit transactions but do not consider Bitcoin as a means of payment, and at the same time warn about the risks of this virtual currency. However, some countries still consider Bitcoin as a means of payment.

Regarding Vietnam, the Governor reiterated the State Bank's stance on Bitcoin, saying that it is not a legally recognized currency. "Bitcoin is also not a legal means of payment. Therefore, using Bitcoin as a means of payment is not in accordance with current laws," the Governor affirmed.

According to the Governor of the State Bank, there are still many different opinions regarding Bitcoin as an asset or commodity. The Government has also directed ministries and branches, including the Ministry of Justice, to take the lead in researching a project on legal frameworks for managing virtual currencies and virtual assets, including Bitcoin.

The State Bank will closely coordinate with the Ministry of Justice from the perspective of state management of currency to have a legal basis for managing Bitcoin.

According to Investment Newspaper