Is cryptocurrency a legal means of payment in Vietnam?

Many countries recognize cryptocurrency as a type of digital asset that is encrypted and transacted on blockchain platforms. However, due to its diversity and complex nature, along with challenges in controlling transactions, many countries do not recognize it as a legal payment method. According to Vietnamese law, cryptocurrency is not accepted as a valid means of payment. In this article, TNTP will analyze why cryptocurrency is not a legal means of payment and the penalties for using cryptocurrency in Vietnamese payment transactions.

1.Under Vietnamese law, cryptocurrency is not recognized as a legal payment method

According to Vietnamese law, cryptocurrency is not considered a legal means of payment.

• Pursuant to Clause 10, Article 3 of Decree 52/2024/ND-CP, legal means of payment in Vietnam include: checks, payment orders, payment authorizations, collection orders, collection authorizations, bank cards (including debit cards, credit cards, prepaid cards), electronic wallets and other means of payment as regulated by the State Bank of Vietnam.

According to Clause 11, Article 3 of Decree 52/2024/ND-CP, any means of payment not falling within the above categories is considered illegal.

• Pursuant to Clause 6, Article 8 of Decree 52/2024/ND-CP, issuing, providing and using illegal means of payment is prohibited.
• Additionally, in a Press Release on February 27, 2014, the State Bank of Vietnam declared that Bitcoin and other cryptocurrencies is not money and is not recognized as a legal means of payment in Vietnam. In Official Letter No. 5747/NHNN-PC dated July 21, 2017, the State Bank of Vietnam states that Bitcoin and similar cryptocurrencies are neither money nor legitimate means of payment under the provisions of Vietnamese law.

Thus, according to current Vietnamese law, cryptocurrency is not a legal means of payment, and its issuance, provision and use for payment purposes are prohibited.

2.Why cryptocurrency is not recognized as a legal means of payment in Vietnam

Currently, controlling cryptocurrency payments faces several key challenges:

• The diversity of cryptocurrencies

Cryptocurrency is not limited to Bitcoin, it includes thousands of different types such as Ethereum, USD Coin, Dogecoin, Pi Network, etc. Individuals and organizations worldwide can issue and provide cryptocurrencies on blockchain platforms.

• The complexity of cryptocurrency

In addition to its diversity, cryptocurrency is a complex and challenging field due to factors such as: platform technology, high value volatility, and security risks. Thus, cryptocurrency cannot yet be considered a legal means of payment when there is not yet an adequate regulatory system in place for platforms facilitating cryptocurrency payments. Moreover, value volatility and the absence of appropriate monetary regulation tools could significantly affect the country’s economy.

• Difficulty in controlling cryptocurrency transactions and payments

Unlike fiat money, which is controlled by central banks and traditional financial systems, cryptocurrency operates on decentralized networks such as blockchain. As a result, central banks, credit institutions and government agencies face significant challenges in tracking cross-border transactions, making it difficult to control the flow of funds and prevent violations in cryptocurrency payments, especially for transnational crimes.

Consequently, cryptocurrency is currently not recognized as a legal means of payment in Vietnam, primarily due to its diversity, complexity and the risks associated with cryptocurrency transactions.

3.Legal consequences for using cryptocurrency as a means of payment

• According to Point d, Clause 6, Article 26 of Decree 88/2019/ND-CP, the act of issuing, providing, and using illegal means of payment may be subject to administrative fines ranging from 50 million VND to 100 million VND.
• Furthermore, according to Article 206 of the Criminal Code 2015, as amended in 2017, using cryptocurrency that leads to significant harm, the violator may face criminal liability as violating the regulations on activities of credit institutions, branch of foreign banks, with imprisonment ranging from 6 months to 20 years.

According to current Vietnamese law, cryptocurrency is not a legal means of payment due to its diversity, complexity and the challenges in controlling cryptocurrency transactions and payments. Therefore, using cryptocurrency for payments may be subject to administrative penalties or criminal liabilities. However, cryptocurrency remains widely used for various purposes such as investment, trading, and value storage. The Ministry of Information and Communications (now merged into the Ministry of Science and Technology) of Vietnam is currently drafting the Digital Industry Law to regulate cryptocurrency-related activities. In the near future, activities related to buying, selling, trading or making payments with cryptocurrency may be considered legal. Therefore, investors should stay informed about legal regulations in each period to avoid risks when participating in cryptocurrency.

The above is the article: “Is cryptocurrency a legal means of payment in Vietnam?” sent by TNTP to our readers. TNTP hopes this article provides useful information to our readers.

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