September 26, 2018 17:53

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Prime Minister requests to strengthen management for multi-level marketing of virtual currency

10:29 | 14/04/2018

VCN- The Prime Minster has signed Directive 10/CT-TTg requesting to strengthen the management of operation related to Bitcoin and other similar virtual currencies.

tien ao thanh kinh doanh da cap thu tuong chi dao tang cuong quan ly Over 9,300 automatic data processing machines for exploiting online virtual currency were imported
tien ao thanh kinh doanh da cap thu tuong chi dao tang cuong quan ly Nearly 2,500 Bitcoin and Litecoin diggers were imported from China
tien ao thanh kinh doanh da cap thu tuong chi dao tang cuong quan ly Potential risks from the import of Bitcoin diggers
tien ao thanh kinh doanh da cap thu tuong chi dao tang cuong quan ly

Investment and trading of virtual currency in the mode of multi-level marketing is more complex. Photo: Internet.

Over the past time, competent agencies have issued warnings about the risks related to Bitcoin and other virtual currency (hereinafter referred to as virtual currency), as well as the risk of using virtual currency for crimes (money laundering, terrorist financing, illegal remittances, tax evasion and phishing), because the virtual currency is operated incognito as a decentralized exchange and not subject to management by any agencies and organizations.

The investment, trading and capital mobilization through Initial Coin Offering (ICO), especially the use of virtual currency to mobilize capital in a multi-level marketing mode is increasingly complicated, which potentially affect the stability of the financial market, social order and safety, and can pose a great risk to engaged organizations and individuals.

In order to limit risks and corollary for society and promptly detect, prevent and handle law violation, the Prime Minister has requested the State Bank to direct Credit institutions and Payment Intermediary Service Providers not to be permitted to conduct illegal transactions related to virtual currency; strengthen the review and promptly report suspicious transactions related to virtual currency in accordance with the provisions of law.

The State Banks shall coordinate with the Ministry of Public Security to detect and handle acts of illegally using virtual currency as currency or payment means.  

The Ministry of Finance shall request mass companies, securities companies, fund management companies and securities investment funds that are not permitted to illegally issue, transact and implement intermediary transaction related to virtual currency, to comply with provisions of the law on anti-money laundering; To conduct practical research and international experience to propose measures for capital mobilization through Initial Coin Offering; To chair and coordinate with relevant agencies to take measures to restrict and manage the imports of machinery and  equipment for purpose of digging virtual currency.  

The Prime Minister has assigned Ministry of Ministry of Public Security to chair and coordinate with Ministry of Industry and Trade and relevant ministries, sectors to inspect, detect, prevent and handle in a timely fashion law violations related to capital mobilization, multi-level marketing, and internet phishing via virtual currency and impersonation for investment and virtual currency business to appropriate assets.

In addition, strengthening investigation and collaboration with relevant ministries and sectors to prevent and handle promptly law violation of organizations and individuals related to money laundering, terrorist financing by illegally issuing, supplying and using virtual currency as currency or payment means.

Ministry of Industry and Trade shall coordinate with Ministry of Public Security to detect and handle in a timely fashion law violation of organizations and individuals engaged in capital mobilization and business under multi-level marketing, and internet phishing via virtual currency and impersonation for investment and virtual currency business to appropriate assets; chair and coordinate with relevant ministries and sectors to detect and handle promptly acts of using virtual currency as illegal payment means in websites and e-trade applications.

The Ministry of Justice shall collaborate with relevant ministries and sectors to urgently propose and complete legal framework on management and handling with virtual currency and virtual assets; coordinate with Ministry of Finance in studying reality and international practices and proposing measures for capital mobilization through Initial Coin Offering (ICO)

The Ministry of Information and Communications shall direct information and press agencies to strengthen the information and propagation in a timely fashion and accurately on risks, potentials and consequences for people when they engage in trading, investing and business in virtual currency. Do not provide information causing unfavorable psychology about virtual currency and Bitcoin.

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The Prime Minister requests the People's Committees of provinces and cities under the Central Government within their assigned functions and competence to direct their sub-departments and branches to strengthen the detection, prevention and promptly handle law violation related to virtual currency operation, especially capital mobilization, multi-level business, internet fraud through virtual currency or impersonation for investment and virtual currency business to appropriate assets; Propaganda and warn to raise awareness of people in the area on the risks and consequences of trading, investing and marketing virtual currency.

By Huong Diu/Ngoc Loan