Viet­nam vows a crypto-crack­down

Southeast Asia Globe - - Agenda -

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.

Viet­namese Prime Min­is­ter Nguyen Xuan Phuc (C)Ikea will soon en­ter Philip­pine shop­ping cen­tres

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