First time regulation on cryptocurrencies

According to previous decrees on cashless payments, an e-wallet is a service that provides customers with an electronic account identified by a payment intermediary on a carrier such as an electronic chip, mobile phone SIM card, computer, etc. A prepaid card is a card that allows the cardholder to make transactions within the value of the deposited money corresponding to the amount prepaid to the card issuer.

The organization providing e-wallet services (payment intermediary units) must maintain the total balance on all payment guarantee accounts for e-wallet services opened at the bank not lower than the total balance of all e-wallets issued to customers. At the same time, the organizations only allow the use of the service for e-wallets linked to the payment accounts and debit cards of the customers themselves.

Thus, the difference between electronic money and virtual money lies in the following factors: Electronic money (legal money) is guaranteed by the State (issued by the State Bank), while virtual money is not guaranteed by the State, nor is it guaranteed by any organization.

Cryptocurrency has a certain physical form and exists independently, while virtual currency always depends on the digital environment to exist. Therefore, virtual currency is not guaranteed to be convertible into legal currency by the entities that issue or manage it, and no organization is responsible for the risks to one or more parties in transactions related to virtual currency.

Regarding the risks of using virtual currency, Mr. Hoang Ngoc Bach, Department of Cyber ​​Security and High-Tech Crime Prevention, Ministry of Public Security said: "The criminal applications used are all abroad and tracing and anonymity in cyberspace are difficult. The lack of vigilance of people in our legal framework and legal corridor are things that we have not adjusted in time, especially related to investment activities in virtual currency."

According to the State Bank, the addition of regulations to clarify the nature of cryptocurrencies is necessary and ensures consistency, in order to eliminate virtual currencies and tools used as means of payment that are not subject to the management of regulatory agencies... thereby creating a legal basis for the State Bank and relevant ministries and branches to effectively perform their state management role.