The Vietnamese government has warned the country’s citizens that investing in crypto is dangerous because the industry is not properly regulated.
According to a report by local news agency Thanh Nien cited by Cointelegraph, the Ministry of Finance said in a statement, “Vietnam has not adopted any legislation related to the issuance, trading, and exchange of virtual currencies and virtual assets.”
The ministry said digital currencies are not covered by the communist country’s securities laws and that only two exchanges, Ho Chi Minh Stock Exchange and Hanoi Stock Exchange, can legally trade securities in Vietnam.
In an effort to expand the regulatory framework, the ministry has set up a research unit to look at the crypto sector and develop appropriate policies. The ministry also aims to raise awareness of the potential risks involved in trading and investing, such as dubious crypto schemes.
The warning follows reports of concerns about a new and increasingly popular Southeast Asian crypto platform called the Pi Network, which some claim is a pyramid scheme, according to a report by VnExpress.