Vietnam’s First Crypto Exchange Could Hit Legal Roadblock

Vietnam’s first ever cryptocurrency exchange may struggle to survive after tough words from the country’s State Securities Commission (SSC) warning off those considering cryptocurrency-related activities.

Swiss-based blockchain company Kronn Ventures AG is committed to launching what will be Vietnam’s first official cryptocurrency platform after signing a memorandum of understanding with Linh Thanh Group, a Vietnam-based distribution company. An official from the company announced the scope of its current projects:

“Working together with Kronn Ventures would lead to a world-class cryptocurrency exchange. Kronn is known widely as a leader in blockchain technology in Switzerland. It is also collaborating with King’s College in London for the AI research facility collaborations.”

However, the Vietnamese government could spoil the party if its announcement made last year still holds when it declared that industries should not participate in “any issuance, transaction or brokerage activities related to cryptocurrencies”. At present, Kronn has been able to secure a license mainly due to the inability of the Vietnamese Ministry of Justice to back up its warnings with further prohibitive regulation.

A Ministry of Justice cryptocurrency review had been forwarded to the Vietnamese government in November 2018, almost one year overdue, proposing three different stances; crypto friendly laws, prohibition or legalization of cryptocurrency, but only under tight scrutiny.

It appears that Kronn Ventures has rather slipped under the wire, taking advantage of Vietnam’s indecisiveness and lack of commitment to any set approach regarding the future of digital currency in the South East Asian country.

 

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