Is it prohibited to transfer Bitcoin in Viet Nam?

I tend to use Bitcoin as a means of payment in the market. Please tell me: Are there any regulations that prohibit the use of Bitcoin? How will it be handled if I use it?

FDVN’s Opinion

Thank you for sending FDVN Law Firm (FDVN) your question. For your question, after studying relating legal regulations, FDVN have some discussions as follow:

[1] Regulations about non-cash payment transaction

According to Clause 1 Article 1 Decree 80/2016/NĐ-CP on amendments to government's Decree No. 101/2012/ND-CP on non-cash payments:

“6. Non-cash payment instruments in payment transactions (hereinafter referred to as payment instruments), including Cheques, payment orders, collection orders, bank cards and other payment instruments as prescribed by the State Bank.

7. Illegal payment instruments are payment instruments not included in Clause 6 of this Article.”

Accordingly, the recent law only allows these means of payment: Cheques, payment orders, collection orders, bank cards and other payment instruments as prescribed by the State Bank.

At Clause 6 Article 6 Decree 101/2012/ND-CP (amended and supplemented by Decree 80/2016/NDD-CP) regulates prohibited acts as follow:

“6. Issuing, providing or using illegal payment instruments.”

Pursuant to the above provisions, virtual money and Bitcoin in particular are not a currency and not a legal means of payment under the provisions of Vietnam law. Issuing, supplying and using Bitcoin as a currency or as a means of payment is prohibited.

[2] Regulations on sanctions

Administrative sanctions

Pursuant to Clause 6 Article 26 Decree 88/2019/NĐ-CP penalties for administrative violations in monetary and banking sector, the act of Issuing, providing or using illegal payment instruments (including Bitcoin and virtual money) will be administratively sanctioned from 50.000.000 – 100.000.000 VND:

“6. A fine ranging from VND 50,000,000 to VND 100,000,000 shall be imposed for committing one of the following violations:

a) opening checking accounts for customers or allowing them to use checking accounts against law regulations while providing payment services;

b) lending 10 checking accounts or more with or without charges;

c) forging payment instruments or keeping, transferring or using forged payment instruments, if not liable to criminal prosecution;

d) issuing, providing or using illegal payment instruments, if not liable to criminal prosecution.”

 It also be applied for Remedial measures: Enforced transfer of benefits illegally obtained to state budget and prohibition of expansion of operating scope, scale and regions until remedial measures against the violation are completed.

Criminal prosecution

It can be criminal prosecution according to Article 206 Penal Code 2015, amended in 2017 about Offences against regulations of law on banking operations and banking-related activities:

“1. A person who deliberately commits any of the following acts that causes a loss of from VND 100,000,000 to under VND 300,000,000 for another person shall be liable to a fine of from VND 50,000,000 to VND 300,000,000 or face a penalty of 06 - 36 months' imprisonment:

….

h) Issuing, providing, using of illegal payment facilities; forging payment documents or payment facilities; using fake payment documents or payment facilities;

2. If the property damage caused by the offence is assessed at from VND 300,000,000 to under VND 1,000,000,000, the offender shall face a penalty of 03 - 07 years' imprisonment.

3. If the property damage caused by the offence is assessed at from VND 1,000,000,000 to under VND 3,000,000,000, the offender shall face a penalty of 07 - 12 years' imprisonment.

4. If the property damage caused by the offence is assessed at ≥ VND 3,000,000,000, the offender shall face a penalty of 12 - 20 years' imprisonment.

5. The offender might also be prohibited from holding certain positions or doing certain jobs for 01 - 05 years.”

This is FDVN’s Opinion related to your request. Hopefully, this opinion will be useful for you.

Nguyen Thi Lan Anh

FDVN Law Firm

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