Is Vietnam’s Hesitance to Embrace Crypto Exchanges Hampering Economic Growth?
Blockchain and cryptocurrency have become an increasingly common part of our lives in 2020. Even if you don’t use cryptocurrency or blockchain platforms, you have most definitely heard of them.
Naturally, countries around the world are starting to embrace these innovations and are creating legal frameworks that support the adoption and development of their respective markets. Exchanges, ICOs, virtual currencies, cryptocurrency brokers, blockchain apps – the list of emerging businesses continues to expand exponentially.
Arguably, the Vietnamese authorities have taken a rather cautious approach to these sectors. Following a series of scams and scandals targeting Vietnamese citizens, regulators have been hesitant and even hostile towards innovative fintech.
A ban on crypto took place in October 2017, when the Vietnamese government issued a decree relating to virtual currencies. It stated that they did not consider Bitcoin and other cryptocurrencies as legal means of payment. This essentially made it illegal to use, trade, issue, or supply cryptocurrencies in the country, punishable by a fine of around $9000. Then, in 2018, the Vietnamese State Securities Commission (SSC) banned businesses from opening crypto brokerages. It also prohibited corporate entities from transacting and trading in virtual currencies. At this point, it seemed like Vietnam’s cryptocurrency dream was over – but, eight months later, things took a surprising turn.
In March 2019, a partnership between two companies resulted in the Vietnamese government doing a u-turn. In a move that surprised the industry, they issued authorization for the country’s first cryptocurrency exchange. Brokerages remained illegal, but there was hope that this would mark a change in the regulatory environment. Swiss company KRONN Ventures AG teamed up with Vietnamese firm Linh Thanh Group. They applied for and acquired a license, launched a platform, and announced their intent to create digital currency as well.
However, nothing has been heard from KRONN or the Linh Thanh Group since. A quick check on both companies’ websites provides no mention of the other company, the project, or exchange in Vietnam. Instead, those wishing to buy cryptocurrency use platforms such as Binance (which launched Vietnamese dong as a trading pair), local sellers, or Bitcoin ATMs. In the meantime, no further licenses have been issued and there appears to be little interest from other exchanges or brokerages to set up in Vietnam. Perhaps this is helped by how people in the country are still allowed by law to speculate on the price of cryptocurrencies in other ways.
Meanwhile, while forex brokers are banned, citizens may use ones that are located offshore. In terms of cryptocurrency, both brokers and exchanges are not authorized to operate in the country. Vietnamese citizens and residents are, however, allowed to use the services of providers based in other jurisdictions. This means that those wishing to buy, sell, or trade cryptocurrency online may do so as long as the broker is not local. Per TopRatedForexBrokers’ feature on brokers that operate in Vietnam, as well as providing forex trading, most of the well-known names like eToro, Vantage FX and xtb offer trading in fiat-crypto pairs as well as crypto-crypto. Users can specify that they are in Vietnam and the site will provide a list of brokers that offer their services there. This means, that despite the government’s generally suspicious approach to crypto, citizens can still legally access and take part in the global market.
None of this means that the idea of cryptocurrency in Vietnam is over, though. Behind the scenes, blockchain – the technology that powers crypto – is booming. Binance had scheduled a Blockchain Week between 29 February and 4 March. Due to the pandemic, the event was canceled and the company said a new date would be forthcoming. Additionally, Vietnam-based bank HDBank became the latest financial institution to join the Contour network. The initiative aims to streamline credit letter issuance via blockchain and smart contracts.
Eight other big-name banks including CTBC Holding, HSBC, Standard Chartered, ING, BNP Paribas, Citi, SEB, and Bangkok Bank have all signed up to be a part of the platform. Contour is scheduled to go live in the second half of this year. Vietnam has also become a hotbed for blockchain developers, enthusiasts, innovators and entrepreneurs. While blockchain is still unregulated by the authorities, legislation is expected as it could provide a much-needed financial boost to the country.
The application of blockchain technology could significantly streamline Vietnam’s main industries – services, manufacturing and agriculture. This means that widescale adoption of distributed ledger technology has the power to propel the economy far beyond its current state. The alternative is that the continued hesitance of the authorities and regulators could hamper much-needed economic growth.
Dung Duong is a business advisor, investor and key contributor for Vietnam Insider. Opinions expressed by contributors are their own. If you want to share your story, publish a press release or just want to ask something, contact Vietnam Insider via [email protected] Follow us on Facebook | Twitter
Author: by Dung Duong
Overview of the Different Types of Cryptocurrency Exchanges
If you plan on investing in Bitcoin or in an altcoin, then finding the right place to buy and sell the coins is the first crucial step. As Bitcoin goes mainstream, lots of companies are cropping up offering a new exchange. To date, there are hundreds of cryptocurrency exchanges available to users nowadays.
These exchanges are basically classified into four types:
1. Fiat-to-crypto exchanges
2. Crypto-to-crypto exchanges
3. Peer-to-peer exchanges
4. Broker exchanges
This article aims to give you basic understanding for each of these 4 types of exchanges.
These are the exchanges that allow you to buy a cryptocurrency using your fiat money (i.e. USD, GBP, Euro, etc). These are most popular with those who aren’t familiar with the cryptocurrency market because it allows for easy access to the cryptocurrency of their choice without much hassle and stress.
Here are the best and most popular exchanges for turning your fiat money into virtual currencies hassle-free.
This is regarded as a social trading network and offers copy trading, with the option of switching fiat to cryptocurrencies to come shortly. eToro is a slick, reputable cryptocurrency broker exchange that is trusted by many users around the planet due to it being regarded and never having suffered a security breach to date.
This is considered to be the world’s biggest Bitcoin exchange and one of the best fiat-to-crypto exchange options. It is also ideal for newbies in cryptocurrencies because it is easy to use and it’s secure.
These exchanges will only allow you to buy one cryptocurrency using another. They offer cryptocurrency trading pairs. This means that you will need to buy a cryptocurrency on a fiat — crypto exchange and then send it to the wallet of the crypto — crypto exchange before exchanging for the coin you want to buy in the first place.
This is normally recommended for more experienced traders who are actively trading between coins to profit quickly or alternatively want to buy less popular altcoins. Unlike fiat-to-crypto exchanges which allow you to buy cryptocurrency directly with fiat currencies, crypto-to-crypto exchanges let you purchase cryptocurrency using another cryptocurrency that’s already in your crypto wallet.
Here are the popular crypto-to-crypto exchanges.
Binance has rapidly become one of the biggest crypto-to-crypto exchanges in the world, with a decentralized exchange designed to process more crypto-crypto transactions at volume than any other platform. It is relatively new in the market having been established in mid-2017. However, due to the considerable backing of some of the biggest names in cryptocurrency and blockchain technology, it is now a platform worth up to $2 billion.
Established in 2014 by a group of online security specialists with a keen passion for crypto assets, Bittrex rapidly became one of the leading crypto-to-crypto exchanges for American customers due to its position as a fully US-regulated and compliant portal. All new sign-ups to Bittrex benefit from having their funds stored in cold storage, further enhancing the security and integrity of this brand. It has no limit on deposit sizes and it has industry leading security features.
Peer-to-peer exchanges are those that simply match a buyer with a seller and will not take the other side of a trade. They aren’t any different from fiat-to-crypto exchanges or crypto-to-crypto exchanges. In both settings, you’re buying or selling cryptocurrencies with other people. However, inside peer-to-peer exchanges, you know the person you’re trading with.
They will normally offer an escrow service so that there is reduced counter-party risk for both buyer and seller. Peer-to-peer exchanges are a great way to trade because they link back to the fundamentals of blockchain technology which is to remove the central authority so that people could exchange funds with each other. Peer-to-peer crypto exchanges are no less safe than their counterparts. The only thing you need to take care over is the person you’re dealing with. Fortunately, the best peer-to-peer crypto exchanges rate users and allow you to assess their credentials before you agree to a trade.
Brokerages are not technically an exchange like fiat-to-crypto exchange or peer-to-peer exchange, because they do not allow you to own the underlying cryptocurrency.
With a cryptocurrency broker site, you can buy and sell Bitcoin as well as other popular virtual coins. In addition to being it somewhat safer, investing at a broker is easier because you don’t need to set up a wallet for each cryptocurrency you’re interested in. On the contrary, you can start right away. You don’t need to be an expert on cryptocurrency, on investing or on using trading platforms to get going.
What they offer is a CFD product, which allows you to speculate on the price of Bitcoin and other cryptocurrencies without being exposed to the same risks that exchanges offer. The main risk being that they are unregulated, whilst brokers must follow a strict set of rules laid out by the regulatory body they have a license with.
Here are the popular brokers.
24 Option started out by offering FOREX and binary trading to its users. It is now fully regulated and offers a range of cryptocurrencies on investments like CFDs. The mobile app lets you carry out mobile trading wherever you are. It has a secure site; it has never been hacked and offers 24/7 trading.
The XTrade site is a CFD and forex broker that includes the likes of Bitcoin, Litecoin, Ethereum and Ripple coin in a fairly lengthy list of currencies that they offer trading possibilities on. It is regulated by CySEC. It is easy to use and it has an intuitive platform.
Asian Market Cap is not personally recommending any specific exchange. We are only giving you an overview of the types of cryptocurrency exchanges and citing some popular exchanges for each type. Players in the cryptocurrency field are always encouraged to do their due diligence before betting on their money.
Author: AsianMarketCap Official
Exchange News | Cryptocurrency Analysis & Insights
View Markets Data →