Vietnam cryptocurrency mining hardware

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Vietnam’s Ministry of Finance (MoF) has proposed a sweeping, albeit short term, ban on the import of cryptocurrency mining products, in accordance to regional reports this 7 days.

The proposal for the blanket ban was initially built by the finance ministry on Monday, with the govt body claiming it is “difficult to regulate” the new cryptocurrencies and types of payments in tokens developed by mining components.

In accordance to the Hanoi Times, the drastic suppress is seemingly in reaction to a complete $660 million crypto fraud that conned an estimated 32,000 traders.

The fallout from the fraud, which concerned two allegedly fraudulent first coin offerings (ICOs), observed the office environment of Vietnam’s primary minister issue a directive purchasing govt authorities which include the central financial institution and many ministries to maximize scrutiny into “activities related to bitcoin and other cryptocurrencies” in April 2018.

A approximately translated report from regional publication Taichinh Vietnam extra:

As a result, to protect against other [similar] achievable functions in the instant long term, the Ministry of Finance proposed to use suspension measures toward importing the mining products.

In accordance to figures from Vietnam Customs, more than 9,300 mining rigs were imported into Vietnam in 2017. As of April 2018, Vietnam had previously imported 6,300 crypto mining rigs in comparison to very last year’s over-all whole, in accordance to VNExpress.

Despite mid-2017 reports that Vietnam was preparing to legalize cryptocurrencies like bitcoin, the central financial institution did not contain bitcoin amid a record of acknowledged non-funds payment methods, outlawing cryptocurrencies in the procedure.

“[A]ccording to the provisions of the law, Bitcoin and other virtual currencies are not lawful means of payment in Vietnam,” examine an excerpt from the central bank’s statement in October 2017. “The issuance, source, use of bitcoin and other equivalent virtual currency as a means of payment is prohibited in Vietnam.”

The proposed law came into effect earlier this calendar year with the extra threat of criminally prosecuting adopters who use cryptocurrency for payment, going through fines up to $9,000.

Featured image from Shutterstock.

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