The cryptocurrency market in Vietnam is entering a phase of finalizing its legal framework as the Ministry of Finance seeks feedback on a draft decree on administrative penalties for violations. However, the maximum fine of 200 million VND is sparking much debate regarding its deterrent effect against increasingly sophisticated fraudulent and manipulative practices.
A step aimed at narrowing the legal "grey area".
Amidst the rapid growth of cryptocurrency assets, which has led to numerous large-scale scams, the Ministry of Finance has sought feedback on a draft decree stipulating administrative penalties for violations in this field.
This is XEM as a necessary move to tighten the market, limit risks, and protect investors.
According to the draft, The maximum fine for violating organizations is 200 million VND , applicable to acts such as offering or issuing crypto assets illegally, organizing illegal trading markets, or violating the responsibilities of a crypto asset service provider.
The penalty was considered "too lenient".
In its comments on the draft, the Vietnam Academy of Social Sciences stated that although the fine is the highest within the current framework, The duration of the supplementary penalty, at only 3-6 months, is not commensurate with the situation. with the degree of violation.
I agree with you. Dr. Tran Quy – Director of the Vietnam Institute for Digital Economic Development They argue that this penalty lacks deterrent effect, as many fraudulent or Token manipulation projects can generate millions of dollars in profit.
"The maximum fine of 200 million VND is almost just a 'violation fee,' insufficient to deter profiteering," emphasized Dr. Tran Quy.
Compare that to the securities industry – where penalties can be as high as 3 billion VND, or 10 times the amount of illegal income , he believes this difference could entice fraudsters. Shifting from stocks to crypto to take advantage of lighter penalties.
Proposals include confiscating cryptocurrency assets and forcing the return of illegally obtained profits.
Many suggestions were made to add more. Measures include confiscation of evidence and means used in violations , including encrypted assets.
According to the Vietnam Academy of Social Sciences, digital assets have the unique characteristic of not existing in physical form, therefore clear regulations are needed. Methods of confiscation and processing on digital platforms .
In addition, experts also suggested They are required to return all illegal gains , or an amount equivalent to the value of the assets that have been disposed of or destroyed.
SSI Digital Technology Joint Stock Company believes that this additional form of punishment is particularly necessary in the current context. Fines alone are not enough of a deterrent .
Should penalties for individual investors be temporarily suspended?
The draft also proposes Individual investors will be fined between 10 and 30 million VND. If cryptocurrency transactions are not conducted through a licensed organization.
However, many argue that during the pilot phase – when No exchange has been officially licensed yet. – Imposing penalties can create a sense of apprehension and may be difficult to enforce.
Assoc. Prof. Dr. Nguyen Huu Huan (University of Economics Ho Chi Minh City) They argue that it is better to prioritize encouraging investors to switch to licensed exchanges, rather than imposing administrative penalties right from the start.
Dr. Tran Quy also proposed a mechanism. “Safe harbor” : The state only provides legal protection for transactions on licensed exchanges, while investors bear the risks for off-exchange transactions, thereby creating a natural incentive for the market to become regulated.
Assoc. Prof. Dr. Nguyen Huu HuanAccording to Chainalysis estimates the inflow of cryptocurrency assets into Vietnam during the period 2022–2024. Over $100 billion , some of which is related to illegal activities such as money laundering or fraud.
Some estimates suggest that Vietnam currently has Approximately 21 million cryptocurrency investors , with transaction volumes exceeding $200 billion , among the highest in the world.
Therefore, many experts believe that The penalties need to be strong enough to deter , but at the same time must be carefully designed to It does not cause psychological "shock". and disrupt the process of forming a legitimate market.
Conclude
The issuance of the Decree on penalties for violations in the field of crypto assets is an important step to narrow the legal "grey area". However, Penalties, additional measures, and approaches to individual investors. Careful consideration is still needed to ensure both deterrence and support for healthy market development during the pilot phase.
Source: Cryptocurrency Blog
