Vietnam to launch first regulated cryptocurrency exchange

Major distribution company Linh Thanh Group is partnering with Swiss blockchain start-up KRONN Ventures to create the first regulated cryptocurrency exchange in Vietnam.

Earlier, late last year, Zug-based KRONN Ventures brought together finance committees in Vietnam, the Philippines, Cambodia, Bangladesh and Sri Lanka to create an international cable system based on blockchain technology. KRONN has also worked with King's College London on research related to artificial intelligence.

Now, according to a press release, KRONN Ventures and Linh Thanh Group will create a "world-class cryptocurrency exchange" in Vietnam. This is quite possible, as the Swiss city of Zug is the leading cryptocurrency and blockchain hub in the world. The companies have reportedly signed a memorandum of understanding and obtained a licence to set up a cryptocurrency exchange in the country.

The initiative is likely to be driven by the desire of emerging Asia to keep up after the cryptocurrency market completes its correction and starts moving upwards. Likewise, cryptocurrency casinos have also gone up, this has become maximally popular at this point in time and use the portal to choose only reliable casinos for themselves!

"The impact of the collaboration between Vietnam's largest distributor Linh Thanh Group and world-class technology KRONN Ventures will be felt not only in Vietnam, but also in other neighbouring Asian countries," the press release said.

Vietnam has not yet decided on the regulation of digital currencies and it is not yet known how the new exchange will fit into local law. However, it was reported last November that the country was considering new regulatory options. Last August, Vietnam completely banned the importation of mining equipment, and last summer the country's regulator warned companies against engaging in cryptocurrency transactions.
According to a new report from the Ministry of Justice, Vietnam is considering amending current legislation to establish new regulations adapted to cryptocurrencies.

Cryptocurrencies are currently not considered a legal means of payment in Vietnam, and the country's banks have occasionally warned citizens about the illegal status of virtual currencies.

Vietnamese Prime Minister Nguyen Xuan Phuc, said that government agencies have been tasked with drafting to develop the first legal system to regulate digital currencies in the country.

It is known that the Vietnamese Ministry of Justice has already studied various versions of the legal framework applied by other jurisdictions. The ministry aims to minimise elements of risk and maximise the potential of the technology, finding some balance before investors and businesses can benefit from blockchain and cryptocurrencies under the new legislation.

Minister of Civil and Economic Law Administration Nguyen Chem Thu said that according to the study, about 1% of Vietnamese citizens have used cryptocurrencies at least once so far, and there are also about 15,600 mining machines operating in the country.

Vietnamese Prime Minister Nguyen Xuan Phuc has called on the Ministry of Justice and the country's financial regulators to tighten "controls on Bitcoin and other cryptocurrency-related activities" in a government directive.

Earlier, Vietnam's Ministry of Finance banned the import of cryptocurrency mining equipment into the country.
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