Despite the cryptocurrency market’s rising success, not everybody seems to be pleased with the large profits it generates. The Vietnamese government appears to be the most recent to send a public alert about cryptocurrencies.
The financial authorities in Vietnam have cautioned the public about the risks involved in trading cryptocurrencies, according to a report from local news publisher Thanh Nien, reminding residents that the industry is unregulated in the nation.
“Vietnam has not adopted any legislation related to the issuance, trading, and exchange of virtual currencies and virtual assets,”noted The Ministry of Finance of Vietnam.
The ministry stated that cryptocurrencies are not subject to Vietnamese securities regulations, and that only two exchanges are permitted to trade securities in Vietnam: the Ho Chi Minh Stock Exchange and the Hanoi Stock Exchange.
The regulator, on the other hand, has promised to close this gap and has already formed a dedicated research group to look into the crypto industry and create a regulatory structure for it in Vietnam.
However, the Ministry has emphasized the importance of raising public knowledge about crypto to reduce risks in trading and investing, as well as the risks associated with illicit and fraudulent crypto-related schemes.
Meanwhile, in Southeast Asia, a new cryptocurrency platform known as the Pi Network is gaining a lot of traction. According to some industry experts, this may be a pyramid scheme. The project, according to Dang Minh Tuan, a blockchain expert at Hanoi’s Posts and Telecommunications Institute of Technology, lacks the clarity of a legitimate blockchain project.
The timing of the Ministry’s alert may be interpreted as a warning about this initiative.
Multiple regulators have issued warnings about cryptocurrency.
The alarm has not only been raised by Vietnamese regulators. Last month, Sweden’s financial regulator, Finansinspektionen, issued an alert to retail traders about the numerous threats and lack of consumer security associated with cryptocurrency.
The announcement, which was published on February 22, confirmed that although the regulator had previously provided an alert about the risks associated with bitcoin trading, it was now providing further guidance after conducting a larger analysis of the crypto-asset market.
Meanwhile, Treasury Secretary Janet Yellen described Bitcoin as “highly volatile” and “inefficient” for transactions in the United States. “Bitcoin is an extremely inefficient way of conducting transactions and the amount of energy that’s consumed in processing those transactions is staggering,” Yellen said at the 2021 DealBook DC Policy Project.