Vietnam Central Bank Temporarily Bans the Import of Crypto Mining Hardware

Vietnam’s stance towards digital currencies isn’t the most permissive, granted the country’s government has undertaken several steps to limit market activity in the region. Now, recent reports indicate that the State Bank of Vietnam has decided to ban the import of cryptocurrency mining hardware for both companies and individuals.

The announcement was made following an official request coming from the Ministry of Industry and Trade (MoIT). According to the ministry, there are several issues surrounding the management of currency flows, hence the use of mining hardware for new coins is making financial management considerably harder for the government. It is important to point out the fact that mining has not been forbidden, hence the ban only attempts to limit the amount of mining hardware brought to the country.

A recent study has showcased that roughly 15,600 mining hardware units have been imported to Vietnam between April 2017 and April 2018. While the number is not overwhelming, it can be regarded as high.

Additionally, the decision is also backed by Vietnam’s stance towards cryptocurrencies. For those who do not know, the country’s government has voted to declare unofficial currencies as illegal in 2017. Enforcement of this ban is scarce, yet it has led to a decrease in local trading volumes.

According to the government, there are several reasons behind these moves: firstly, regulation is proving fairly difficult granted the dynamic state of the market, and secondly, the government is responsible with protecting people against internet financial scams. For instance, law enforcement agencies recently dealt with a $660 million ICO-related scam a few months ago.

Despite these aspects, the ban against the import of digital currency mining hardware has been given a temporary status. It is expected that it will be lifted as soon as the development of a better regulatory framework concerning cryptocurrencies and mining hardware is completed.

With these aspects in mind, the local cryptocurrency market in Vietnam remains confused, granted the legislative uncertainty and bans.