After India, China, Vietnam Issue Warning Against Bitcoin

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After India, China, Vietnam Issue Warning Against Bitcoin
After India, China, Vietnam Issue Warning Against Bitcoin

After India, China, Vietnam Issue Warning Against Bitcoin

Last year China and India, the giant economies of Asia issued a warning against the use of Bitcoin to customers. ForexMinute had then reported that India’s central bank, warned against Bitcoin saying that such instruments for financial transactions pose significant risks to the users, holders and traders as there are potential financial, operational, legal, customer protection and security-related risks.

Now, on similar lines, Vietnam’s State Bank has issued a statement wherein it has warned against Bitcoin. The decision has blocked credit institutions from offering any digital currency services. Though this should not surprise Bitcoin customers as the Vietnamese government had issued a strong warning back on the 14th of February when it concluded that it did not recognize Bitcoin.

The government of Vietnam says that Bitcoin cannot be used as a legitimate method of payment. Also, according to the government authorities in Vietnam Bitcoin is being used for money laundering, tax evasion, illicit trade, and the risk of speculation and for these reasons, the customers are warned to keep a distance from it.

Nonetheless, the warning has come the time when Mt. Gox has gone bankrupt and a large number of customers are feeling cheated. The government of Vietnam says that consumers would have no protection in the event of investment loss. Though if the language of the warning is kept in mind, it is not an outright ban on Bitcoin, it looks like the government is paying attention to what is happening to Bitcoin.

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Mt. Gox’ Failure Seems to Have Prompted the Vietnamese Government

Mt. Gox failure has set dangerous precedents and the latest warning is similar to others that have been seen before. Though it has not yet been established whether the latest warning is linked with the failure of Mt. Gox, it looks like the government might have given a thought to it, particularly, when some lawsuits are coming up against the Bitcoin exchange.

When a Bitcoin exchange fails and customers lose their investment it is not just a matter of the two parties but the government also gets involved in it. Perhaps, the Vietnamese government does not want to get involved in any sort of crisis that its citizens get into due to failure of some Bitcoin collapse. The preemptive warnings are now new thought but they discourage users to some extent.

Now, with the latest warning, Vietnam has joined the list of the countries that have issues similar warnings. So far, Thailand, Russia, France, China, Malaysia, Indonesia, India, and Norway have issued similar warnings to Bitcoin customers in their respective territories.

To contact the reporter of this story: Deepak Tiwari at deepak@forexminute.com