Mining Halts As Vietnam Moves To Ban The Import Of Mining Equipment
Individuals and enterprises in Vietnam have halted all mining operations as the imminent ban on crypto mining devices looms.
Vietnam to halt the import of mining devices
Regulatory scrutiny on crypto related operations in Vietnam has increased following the nationwide ICO-fraud that reportedly carted away with an estimated $660 million from 32,000 domestic investors.
Following the incident, Vietnam’s Ministry of Finance (MoF) proposed a blanket ban of all crypto activities in June. However, authorities in the nation increased scrutiny on the activities of cryptocurrencies in the country.
In response to the scam, the State Bank of Vietnam (SBV), the country’s central bank, in July agreed with the proposal made by Vietnam’s Ministry of Finance and backed the movement for the ban.
After the news of the scam made way, Vietnam’s prime minister ordered six of the country’s ministry departments including the police, and the central bank to investigate the scam.
According to the country’s customs department, after deliberating the move led Vietnam’s Ministry of Finance, Vietnam has moved to halt imports of cryptocurrency mining equipment.
Viet News reported on Monday, August 13 that prior to the country’s decision to ban import mining devices, domestic businesses and individuals had stopped importing crypto mining equipment altogether since the beginning of July.
According to the report, the nation’s Ministry of Trade, Finance, and Justice are considering the ban in order to improve the country’s management of currency transactions.
Vietnam’s mining profile
Mining operation in Vietnam began to gain traction last year after Ho Chi Minh City (HCMC) Customs Department cleared more than 7,000 Bitcoin and Litecoin miners.
In the first half of the year, Vietnam looked set to become a cryptocurrency mining hub with officials reporting as many as 3,664 Application-Specific Integrated Circuit (ASIC) devices.
3,000 of the mining machines were imported by four enterprises involved in mining operations while the other devices belonged to individuals and small businesses.
According to the HCMC Customs Department, the other 664 mining devices belonging to various individuals and organizations did not have import tax codes.
Majority of the imported devices were revealed to be models of the popular Antiminer, a brand of cryptocurrency mining equipment developed by industry giant Bitmain.
Cryptocurrencies to become totally outlawed in Vietnam
Banning the import of crypto mining devices in Vietnam would be the last step in completely outlawing industry which is beginning to receive massive adoption.
At the turn of this year, the Central Bank of Vietnam after failing to recognize payments made in cryptocurrency as a legal form of transaction.
In Vietnam, the recognized non-cash payments include checks, payment orders, and bank cards. Issuance, acceptance, and usage of Bitcoin or other cryptocurrencies in illegal in the country and faulting individuals can face prosecution.
With the law in place, individuals caught making or receiving payments in cryptocurrency can be subjected to a fine of between 150 million and 200 million Vietnam Dollar, or roughly $6000 — $9000.
If the law prohibiting the importation of mining devices is passed, the cryptocurrencies would have successfully been outlawed in Vietnam.