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Vietnam to Get Its First Ever Cryptocurrency Exchange – But Is It Legal?

Last Updated March 4, 2021 5:11 PM
Yashu Gola
Last Updated March 4, 2021 5:11 PM

Kronn Ventures AG, a Switzerland-based blockchain firm, is going to launch a cryptocurrency exchange in Vietnam.

The company signed a memorandum of understanding with Linh Thanh Group, a Vietnam-based distribution company, for the establishment of the country’s first crypto trading platform. The two further agreed to create a cryptocurrency for their exchange, without revealing how it would serve the platform.

“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,” an official from Linh Thanh said  in a press statement.

The event marked Kronn’s growing presence in the Vietnamese cryptocurrency market. The Zug company earlier formed a coalition of five developing countries – Bangladesh, Sri Lanka, Philippines, Cambodia, and Vietnam – to build a blockchain-based international wiring system.

Legal Roadblocks

The Kronn announcement followed the State Securities Commission of Vietnam’s (SSC) ban on cryptocurrency-related activities. The securities watchdog issued a circular in July last year, ordering industries to not partake in “any issuance, transaction or brokerage activities related to cryptocurrencies.” The order came in response to a written directive issued by Vietnam’s prime minister office. PM Nguyen Xuan Phuc ordered the central bank, some ministries, and law enforcement agencies to oversee “activities related to bitcoin and other cryptocurrencies.”

In January 2018, Vietnamese media reported  that the government had separately asked the Ministry of Justice to submit a crypto review by the end of the month. In response, the ministry submitted their review report in November 2018, proposing three different legal directions: lax crypto laws, a complete prohibition, or legalization under strict conditions. By then, the Vietnamese lawmakers were deciding to create a legal framework for cryptocurrencies.

Nevertheless, Kronn confirmed that it was able to secure a license for launching a cryptocurrency exchange. While the claim conflicted with the SSC ban, as mentioned above, the lack of crypto law updates from the government’s side made it difficult for CCN.com to verify the news. We are reaching Kronn to present a piece of evidence on the matter that could clarify the crypto’s legal status in Vietnam altogether.