Vietnam vows a crypto-crackdown
A cryptocurrency scam worth an estimated $660 million led Vietnam's deputy prime minister to order investigations into the latest fraud allegations to hit the lightly regulated initial coin offerings (ICO) market.
Vietnamese company Modern Tech Jsc was accused of reeling tens of thousands of victims into a scam by selling iFan and Pincoin cryptocurrencies.
In response, deputy prime minister Vuong Dinh Hue ordered authorities to tackle the scam in a government statement that did not name the company allegedly at fault.
In a separate statement, Prime Minister Nguyen Xuan Phuc also called for domestic financial companies to avoid processing cryptocurrency transactions, which the government had previously deemed illegal. A signed directive from the premier called for strengthened management and regulations to be developed for cryptocurrency activities.
ICOs have in some cases allowed for valid funds to be raised quickly from investors for blockchain-related ventures. But the system has also been racked with reports of dubious activity and cons, leading countries globally to scrutinise the nascent system further.
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