Vietnamese Regulators Crack Down on Crypto-Related Business ActivityJul 27, 2018, 11:00AM
Vietnam's move seeks to bar companies and institutions from getting involved in the market, blocking them off from potential profits.
Asian cryptocurrency markets are once again facing the threat of far-reaching regulation. This time the threat comes out of Vietnam where the country's financial market regulator is reported to have forbidden a wide range of firms from conducting cryptocurrency-related operations in the jurisdiction. The announcement comes from the Vietnamese state news agency in a press release published Thursday.
Vietnamese financial markets are regulated by the State Securities Commission (SSC), an organization that oversees the capital and equity markets in the fast-growing South East Asian nation. The SSC has now banned publicly-traded companies, fund managers, and investment funds from engaging in any issuance, transaction, or brokerage activities related to cryptocurrency. The recent announcement is based on Directive No 10/CT-TTg issued by the country's prime minister in order to control and manage activities related to Bitcoin and other digital assets.
The Bigger Picture of Crypto Regulation in Asia
The new Vietnamese regulation is part of a larger trend in the Asian region of the global cryptocurrency market. Vietnam is following in the footsteps of China, Korea, and several other major countries that have issued significant restrictions, if not outright bans, on the use of cryptocurrencies within their jurisdictions. Vietnam's move is unique because it seeks to bar companies and institutions from getting involved in the market, blocking them off from potential profits in the sector. This comes at a time when cryptocurrency-related entities and operations are being further integrated into the mainstream in the United States and Europe.