Payment rejected: Bitcoin transactions remain illegal in Vietnam

Cryptocurrencies such as Bitcoin remain illegal in Vietnam, the State Bank affirmed in a statement released on Saturday.

"From January 1, 2018, the act of issuing, supplying or using illegal means of payment may be subject to prosecution in accordance with the provisions of Article 206 of the Penal Code 2015," the statement said.

The only payment methods allowed in the country are issued or controlled by the State Bank.

People who attempt to use illegal means of payment will be subject to a fine ranging from $6,600-9,000.

Earlier this week, Vietnam’s top technology university FPT announced plans to allow students to pay for their tuition fees using Bitcoin.

Some service providers have already started accepting Bitcoin and other cryptocurrencies in Vietnam, but they are mostly used for trading and speculation on the free market.

The central bank has warned organizations and individuals in Vietnam not to invest in Bitcoins or conduct transactions in the currency, saying they would be taking a huge risk with no legal protection.

“Bitcoin transactions are anonymous and can be used for money laundering, drug trafficking, tax evasion and illegal payments,” the bank claimed.