Despite the growing popularity of the cryptocurrency market, not everyone seems to be happy about the heavy profits coming out of it. Vietnamese financial authorities seem to be the latest to issue a public warning about cryptocurrencies.
According to a report from local news publisher Thanh Nien, the financial authorities in Vietnam have warned the public about the risks involved when trading cryptocurrencies, reminding residents that the industry isn’t regulated 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 highlighted that cryptocurrencies are not governed by the Vietnamese securities laws, adding that there are only two exchanges, Ho Chi Minh Stock Exchange and Hanoi Stock Exchange that are allowed to trade securities in Vietnam.
However, the regulator has vowed to address this gap and has already established a dedicated research group to investigate the crypto industry to develop a regulatory framework for the industry in Vietnam.
That said, the Ministry has also stressed the need to promote crypto awareness in public to mitigate risks in trading and investing, along with the risks associated with illegal and fraudulent crypto-related schemes.
Meanwhile, a new cryptocurrency platform called the Pi Network is gaining immense popularity in Southeast Asia. Some industry experts have claimed that this could be a pyramid scheme. Dang Minh Tuan, a blockchain expert at the Posts and Telecommunications Institute of Technology in Hanoi, has outlined that the project lacks the transparency of a legitimate blockchain project.
The timing of this warning issued by the Ministry could indirectly be a flag raised about this project.
Crypto flagged by multiple regulators
Vietnamese regulators aren’t the only ones to have raised the alarm. Last month, Finansinspektionen, Sweden’s financial regulator, issued a warning to retail traders about the various risks and the lack of consumer protection involved in crypto.
Published on February 22, the announcement stated that while the regulator had already issued a warning regarding the risks associated with bitcoin trading, it was publishing further advice after having completed a wider study of the crypto-asset sector.
Meanwhile, in the U.S., Treasury Secretary Janet Yellen went on to call Bitcoin “highly speculative” and “inefficient” for transactions. “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.