No law to protect crypto currency users

Born after the pioneering crypto-coin Bitcoin, the virtual currency Onecoin is emerging as a form of multi-level business, promising colossal profits for users by inviting more people to join the network.

According to economic expert Nguyen Tri Hieu, Onecoin is not an existing monetary form; the more people use the crypto currency, the higher demand there is for it. As a result, its value would increase, but the process poses huge risks for users.

The State Bank of Vietnam (SBV) has stated that under current laws and regulations on monetary and banking policies, Bitcoin and other similar virtual currencies are not legal tender or a permitted means of payment in Vietnam. Credit institutions are not allowed to use them while supplying services to customers.

The central bank also affirmed the ownership and trading of crypto currencies has substantial risks since they are not protected by law. The bank has warned organisations and individuals not to invest, keep or conduct any payments with the format.

The virtual currencies are not regulated by any institution or country worldwide. Therefore, their users have no legal protection and have to bear the losses arising from their volatility themselves.

vietnamnet

>   Further VND devaluation will only benefit China: economists (10/09/2015)

>   Rise in deposit interest rates a cause for concern (10/09/2015)

>   Finance Ministry answers tax and customs issues (10/09/2015)

>   Local firms suggest delaying hike to natural resources tax (10/09/2015)

>   Ministry proposes increase to special consumption tax (10/09/2015)

>   In competing with China, weak VND policy will not help (09/09/2015)

>   Banks rush to ask for higher foreign-ownership rate (09/09/2015)

>   Gov't to lower corporate loans to equity ratios (09/09/2015)

>   Nam A Bank cancels merger plan (08/09/2015)

>   Weaker VND feared to cause flight of hot money out of Vietnam (08/09/2015)