Vietnamese financial authorities have warned the public about the risk of investing in cryptocurrencies because the industry is not regulated in Vietnam, the local news agency Thanh Nyan reported on Wednesday.
“Vietnam has not adopted any legislation relating to the issuance, trading and exchange of virtual currencies and virtual assets,” the Vietnamese Ministry of Finance said.
The ministry said digital currencies are not part of the Vietnamese Securities Act and that only two exchanges, the Ho Chi Minh City Stock Exchange and the Hanoi Stock Exchange, are allowed to trade securities in Vietnam.
To fill this gap, the ministry has set up a research group dedicated to studying the crypto industry and developing a legislative policy for coding in the country. The Ministry also emphasized the need to raise awareness of the industry in order to avoid potential risks in trade and investment, as well as the risk associated with illegal and fraudulent schemes related to cryptocurrencies.
The new warning from the government comes amid reports of growing doubts about a new cryptocurrency platform called Pi Network. The network is becoming more and more popular in Southeast Asia, but some fear that it may be a hierarchy. According to the VnExpress report, Dang Minh Tuan, a blockchain expert at the Post and Communications Institute of Technology in Hanoi, said the Pi network lacks transparency in the legitimate blockchain project.
As the Cointelegraph previously reported, the Vietnamese government has been somewhat hostile to adopting the crypto industry in recent years, despite clear support for the blockchain technology behind the cryptocurrency. After banning cryptocurrency as a means of payment in 2018, Vietnamese authorities have continued to urge citizens to avoid using the cryptocurrency.