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The Hanoitimes - Investments in forex trading platforms, seen as illegal, would not be protected by law, said a senior official of the central bank. Credit institutions with permission from the State Bank of Vietnam (SBV) are the only ones allowed to provide foreign exchange (FX) trading and derivatives services on the domestic and international markets. Vice Governor of the State Bank of Vietnam Dao Minh Tu at the press briefing. Photo: Nhat Bac. I nvestors should be cautious in participating in illegal forex trading platforms, said SBV’s Vice Governor Dao Minh Tu at a monthly government’s press briefing on December 2, referring to the case of growing numbers of such platforms are calling for investment with promises of soaring profit. “So far, local authorities have not issued licence for any forex trading floor. Therefore, all transactions on these floors are illegal,” stressed Mr. Tu. “Individuals investing in these platforms, seen as violating laws, would not be protected by law,” he noted. Mr. Tu said during the Covid-19 crisis, legal businesses anywhere around the world could hardly guarantee profit of up to a couple of dozen percent, let alone promises for profit of hundreds of percent per year, which is a sign of fraud. Vice Minister of Industry and Trade Do Thang Hai noted forex trading platforms in Vietnam are form of illegal multi-level marketing activities that pose high risks in terms of assets losses for investors. “Those participating in these activities could be subject to a penalty of up to VND5 billion (US$217,500) or five-year jail term,” Mr. Hai stressed. Some investors admitted greedy is a major reason for them to participate in forex trading activities. However, they argued a lack of legal framework regulating such activities has directly led to a growing number of such platforms operating publicly and attracting ill-informed investors. …

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The Hanoitimes - The multi-level market forex activities are illegal in Vietnam. The Vietnam Competition and Consumer Protection Authority (VCCA) under the Ministry of Industry and Trade warns that some financial investment platforms imply potential risks for local investors and they could be subject to a penalty of up to VND5 billion (US$216,000) or five-year jail term. The warning of the VCCA about illegal activities of forex trading. According to the government decree, organizations and individuals recruiting participants to invest through the financial investment platforms can be criminally handled. The VCCA recently gathered a lot of advertising information, which called for financial investment through financial investment platforms, especially the form of foreign exchange (Forex) or binary options (BO). Earlier, a representative from the State Bank of Vietnam told local media that anyone trading foreign currencies is involved in illegal activities. The Vietnamese authority has not issued permits to any forex trading platforms. According to the department, all transactions on the platforms are via the internet while money of local investors is real. Commissions and incomes earned from the websites are virtual currencies or sent through e-wallets, which are not recognized by the Vietnamese regulatory authorities as legal payment. In case there are risks related to the system, the investor’s investments will not be guaranteed. Besides, investors are also exposed to other risks when participating in the form of financial investment platforms such as disclosing personal information, or the disappearance of the system when the sums collected from the participants are enough to close. In terms of legal risk, many financial investment platforms showed signs of attracting participants by paying bonuses and commissions from recruiting members participate in investment at levels, branches. As a result, there are signs of …

[Read more...] about Illegal forex activities face fines up to $216,000

Leaders of the Ministry of Industry and Trade, the Ministry of Public Security as well as the State Bank of Vietnam have concurred that operations of foreign exchange (forex) platforms are illegitimate, while cryptocurrencies are not methods of payment compliant with law in the nation. The statements were made during a regular government press meeting on Tuesday. According to Dao Minh Tu, Deputy Governor of the State Bank of Vietnam, foreign currency trading and derivative services can only be provided by licensed credit institutions and commercial banks. The central bank has not licensed any organization to run these services, Tu asserted. “The establishment of forex trading platforms is against the law and should be penalized accordingly,” he stated. In reality, these forex schemes are tempting new investors with promises of profit rates reaching as high as three digits. Due to the illegitimate nature of these platforms, investors will not be protected by law, Tu warned. Also commenting on the phenomenon, To An Xo, chief of the Ministry of Public Security Office, said the agency has urged the national government to order a thorough review of forex investment from the Ministry of Justice. The review will inform Vietnam’s effort to harness the forex market, plus helping investors making the right choice and avoiding scams, Xo added. Ministries should tackle issues of illegitimate forex schemes by issuing detailed guidance on the implementation of current regulations related to forex, said Do Thang Hai, Deputy Minister of Trade and Trade. Dao Minh Tu, Deputy Governor of the State Bank of Vietnam, speaks during a regular government press meeting on March 2, 2021. Photo: Nguyen Khanh / Tuoi Tre Cryptocurrency ban E-commerce regulators in Vietnam are struggling to detect illegal transactions, which in turn hinders the sector's development, Deputy Governor Tu said. For that reason, the State Bank of Vietnam has required that …

[Read more...] about Forex trading platforms against Vietnamese law: officials