Vietnam's Central Bank Announces Ban on Bitcoin Payments

The State Bank of Vietnam has issued a statement banning the use of bitcoin and other cryptocurrencies in payments from Jan. 1, 2018.

AccessTimeIconOct 31, 2017 at 3:10 p.m. UTC
Updated Sep 13, 2021 at 7:06 a.m. UTC
10 Years of Decentralizing the Future
May 29-31, 2024 - Austin, TexasThe biggest and most established global hub for everything crypto, blockchain and Web3.Register Now

Vietnam's central bank is prohibiting the use of bitcoin and other cryptocurrencies in payments.

According to an Oct. 30 statement, the State Bank of Vietnam said that cryptocurrencies are not a "lawful means of payment" in the country, and the "issuance, supply, use of bitcoin and other similar virtual currency as a means of payment is prohibited."

From next year, it goes on, illegal use of cryptocurrencies in payments will be subject to penalties of between 150 million ($6,600) and 200 million ($8,800) Vietnamese dong (VND).

The central bank states:

"As from January 1, 2018, the act of issuing, providing and using illegal means of payment (including bitcoin and other similar virtual currency) may be subject to prosecution."

The moves comes as part of a new legal framework for cryptocurrencies instigated by Vietnam's Prime Minister Nguyen Xuan Phuc. That process has now been completed and the framework submitted to the government, the State Bank indicates.

Local reports suggest that the ban may already be having an impact on local institutions.

News source VietnamPlus said that FTP University in Hanoi, which recently announced it would allow students to pay for tuition in bitcoin, could now be forced to reverse that decision. Representatives of the State Bank reportedly stated that, if the university continued to treat bitcoin as a "legal means of payment," it would be "committing an act of violation under the current law provisions, and may subject the university to the appropriate sanction."

The move by the central bank is likely to come as a shock to many in the domestic cryptocurrency space. When the prime minister requested the framework to be drawn up in August, there were hopes the country might formally recognize bitcoin as a form of payment next year.

However, the country has previously issued warnings about bitcoin and blocked credit institutions from offering digital currency services.

State Bank image via Shutterstock

Disclosure

Please note that our privacy policy, terms of use, cookies, and do not sell my personal information has been updated.

CoinDesk is an award-winning media outlet that covers the cryptocurrency industry. Its journalists abide by a strict set of editorial policies. In November 2023, CoinDesk was acquired by the Bullish group, owner of Bullish, a regulated, digital assets exchange. The Bullish group is majority-owned by Block.one; both companies have interests in a variety of blockchain and digital asset businesses and significant holdings of digital assets, including bitcoin. CoinDesk operates as an independent subsidiary with an editorial committee to protect journalistic independence. CoinDesk employees, including journalists, may receive options in the Bullish group as part of their compensation.


Learn more about Consensus 2024, CoinDesk's longest-running and most influential event that brings together all sides of crypto, blockchain and Web3. Head to consensus.coindesk.com to register and buy your pass now.