IS CRYPTOCURRENCY TRADING IN VIETNAM LEGAL?
Q: Dear lawyer, recently, the purchasing and trading of virtual crypto currencies has been quite common. I have relatives who are also conducting virtual currency trading activities. So, is the trading of virtual currencies in Vietnam prohibited by law?
Answer: Hi guy With your question Gattaca Law would like to answer as follows:
Virtual currency is the name that Vietnamese people often use to refer to cryptocurrencies (such as bitcoin, Ethereum, Polkadot, Near,...) which is a currency created by blockchain technology that only exists in the digital environment. First, with your question, Gattaca Law would like to make two possible cases as follows:
1. You use virtual currency as a means of payment in transactions.
2. You use virtual currencies as the object of transactions, which means that you use VND to buy and sell, speculate on virtual currencies, do not use them for payment.
In the case of using virtual currency as a means of payment, this is a violation of the law, because virtual currencies (or cryptocurrencies) are not considered legal payment methods in Vietnam. Concrete:
In Clauses 6 and 7, Article 4 of Decree No. 101/2012/ND-CP amended by Decree No. 80/2016/ND-CP:
"6. Non-cash means of payment used in payment transactions (heretly referred to as means of payment), including: Cheques, orders, expenditure authorizations, collection, commissioning of collection, bank cards and other means of payment as prescribed by the State Bank.
7. Illegal means of payment are means of payment not specified in Clause 6 of this Article."
In addition, official letter No. 5747/NHNN-PC of the State Bank of Vietnam dated July 21, 2017 to the government office also affirmed:
"Cryptocurrencies in general and Bitcoin, Litecoin in particular are not currencies and are not legal means of payment in accordance with Vietnamese law. The issuance, supply and use of cryptocurrencies in general and Bitcoin, Litecoin in particular (illegal means of payment) as currencies or means of payment are prohibited acts. Sanctions for handling this act have been stipulated in the Government's Decree No. 96/2014/ND-CP on sanctioning administrative violations in the field of currency and banking and the Criminal Code 2015 (amended and supplemented)."
As such, Vietnam does not recognize virtual currencies as well as Bitcoin as a means of payment. The release, stockpiling, and supply of them as a means of payment is not legal and can be prosecuted for criminal liability.
 In case you use virtual currency as the subject of the transaction, currently Vietnamese law does not regulate this issue. Therefore, in the case of trading, speculating on virtual currency without using it as a means of payment is not contrary to the law, but there will be a lot of risks when not protected by law (fraud, theft, system collapse,...).
For detailed advice and timely support, please contact:
Gattaca Law Firm
Address: 32 Nguyen Dinh Hoan, Nghia Do, Cau Giay, Ha Noi
Hotline: 0243.204.1777 – 090.17.63.379
Website: gattacalaw.vn