Bitcoin Vietnam, the oldest cryptocurrency platform in the country, is again faced with the risks of running a profitable business in specific regions and now the exchange's Internet domain has been seized by the Vietnamese government.
Bitcoin Vietnam, which was officially launched in 2014, is currently facing further challenges.
Last month, the company was accused by regulators of using illegal social networks and creating an illegal website. This "unauthorized social network" appears to be open comments on the exchange's blog that appeared there about twice a month. Therefore, it is quite clear that the accusation of “creating a social network without a proper license” is ludicrous.
The Department of Broadcasting, Television and Electronic Information of the Ministry of Information and Communications of Vietnam fined Bitcoin Vietnam VND 15 million (about $659) for “operating an illegal blog” and VND 25 million (about $1,100) for “illegal social networks.”
In addition, the Bitcoin.vn domain was hijacked and is no longer active. Running "nslookup" revealed that the domain name is not listed on the alternate server and that it no longer has an IP address, indicating that the domain has been completely removed from its registrar.
Over the past few years, despite the prosperity of the cryptocurrency ecosystem as a whole, State Bank of Vietnam (SBV), determined that virtual currencies are not legally a form of payment and their use is punishable by an administrative fine. Fines can reach up to 200 million VND (about 9,000 US dollars). Additionally, as of January 1, 2018, the issuance or use of illegal means of payment (including Bitcoin and other digital currencies) may be subject to prosecution.
Despite tough policies of government agencies, Bitcoin Vietnam managed to work all these years and cooperate with Vietnamese regulators. Business tried to be as transparent and responsible as possible in relation to government agencies. This year, the company has planned serious investments in the development of the Vietnamese cryptocurrency market, but if problems continue, the exchange may be forced to move to a more accommodating jurisdiction, following the example of Chinese cryptocurrency platforms. According to the CEO and founder of Bitcoin Vietnam Nguyen Tran Bao Phuong, the exchange would not like to leave the country.. He hopes the government will soften its radical stance towards technological and financial innovation. While radical cryptocurrency bans will lead to a dark crypto market and cement Bitcoin's reputation locally as a means of money laundering.
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