SSC warns securities firms on cryptocurrency
SSC warns securities firms on cryptocurrency
The State Securities Commission has recommended that public companies, securities companies and fund managers as well as securities investment funds not carry out issuance, trading and brokerage activities related to virtual currency.
This is the second announcement by the market watchdog regarding Bitcoin and other cryptocurrencies since the first one on January 29 this year.
The announcement is in line with the Prime Minister’s direction in April on strengthening the management of Bitcoin and similar forms of cryptocurrency in the country.
In the prior notice, SSC warned investors and companies of potential risks related to cryptocurrency trading after an increasing number of companies are doing business in financial technology services (fintech) or raising capital through initial coin offerings (ICO), crowdfunding, peer-to-peer lending or blockchain, which are new products and technologies that have not been legally regulated.
The SSC advised investors to be cautious when investing in new products to limit possible losses. For companies, while awaiting a legal framework for these products, the watchdog requested securities firms not participate in issuing, advising and trading virtual money and other financial technology products and comply with anti-money laundering laws.
Also regarding the management of cryptocurrency transactions, in mid-July, the State Bank of Viet Nam said that it agreed with the proposal of the Ministry of Industry and Trade to suspend the import of cryptocurrency mining machines.
