CÓ THỂ SỬ DỤNG BITCOIN LÀM PHƯƠNG TIỆN THANH TOÁN TẠI VIỆT NAM HAY KHÔNG? / CAN BITCOIN BE USED AS A

Legal situation:

Dear Lawyers, I have a question as follows. Recently, I have learned about Bitcoin and understand that Bitcoin is a type of digital currency, also known as virtual currency, and that Bitcoin is currently not prohibited in Vietnam. With such information, I have purchased a certain amount of Bitcoin on reputable exchanges. Therefore, if I use Bitcoin as a means of payment among friends, would it be lawful?

FDVN’s opinion: 

Thank you, our valued Client, for sending your question to FDVN Law Firm (FDVN). Regarding your consultation request, after reviewing the relevant legal regulations, FDVN would like to provide the following opinions: 

Pursuant to Article 16 of the Law on the State Bank of Vietnam 2010, the currency unit of the Socialist Republic of Vietnam is "dong". with its national symbol being "d" and international symbol being "VND": one "dong" is equal to ten "hao" and one "hao" is equal to ten "xu". 

Under Clause 2, Article 6 of the Law on the State Bank of Vietnam 2010, foreign exchange includes: 

a/ Currencies of other countries or the common European currency and other common currencies used in international and regional payment (below referred to as foreign currencies):

b/ Payment instruments in foreign currencies, including checks, credit cards, bills of exchange, debentures and other payment instruments:

c/ Valuable papers in foreign currencies, including government bonds, corporate bonds, promissory notes, stocks and other valuable papers;

d/ Gold belonging to state foreign exchange reserves, gold on residents' offshore accounts; and gold bullions, bars, granules or ingots which are brought into or out of Vietnam's territory.

e/ Currency of the Socialist Republic of Vietnam which is brought into or out of Vietnam's territory or used for international payment.

In addition, Official Dispatch No. 5747/NHNN-PC dated July 21, 2017 states: “Virtual currencies in general, and Bitcoin and Litecoin in particular, are not currencies and are not lawful means of payment under Vietnamese law. The issuance, supply, and use of virtual currencies in general, and Bitcoin and Litecoin in particular (unlawful means of payment), as currency or means of payment are prohibited acts.” 

Based on the above grounds, it can be affirmed that Bitcoin is not recognized by Vietnamese law as a lawful currency and is not permitted to be used as a means of payment in Vietnam. Therefore, the use of Bitcoin for payment purposes constitutes a violation of the law. 

According to Point d Clause 6, Clauses 9 and 10 Article 26, and Point b Clause 3 Article 3 of Decree No. 88/2019/NĐ-CP (as amended and supplemented by Decree No. 143/2021/NĐ-CP), acts of issuing, supplying, and using unlawful means of payment (including Bitcoin) may be subject to administrative sanctions as follows: 

- Individuals may be fined from VND 50,000,000 to VND 100,000,000.

- Organizations may be fined from VND 100,000,000 to VND 200,000,000.

Additionally, violators may be subject to supplementary measures such as confiscation of exhibits and means used for the violation, and remedial measures requiring the return of any illegal gains obtained from the violation to the state budget; and restrictions on expanding the scope, scale, and area of operation until the consequences are fully remedied.

Furthermore, the act of issuing, supplying, or using unlawful means of payment may also incur criminal liability for the offence of violating regulations on banking activities and other activities related to banking under Article 206 of the 2015 Criminal Code, as amended and supplemented in 2017, if it causes damage to others of VND 100,000,000 or more. Depending on the amount of property damage caused, offenders shall be subject to different penalty brackets, with the highest penalty being up to 20 years of imprisonment. Offenders may also be prohibited from holding certain positions, practicing certain professions, or performing certain jobs for a period of 01 to 05 years.

The above is FDVN’s advisory opinion regarding your request based on the applicable legal regulations. We hope this advice is helpful to you.

Trần Văn Quý – FDVN Law Firm