VietNamNet Bridge - The skyrocketing price of bitcoin is creating frenzied trading. The price in Vietnam is rising in line with the world price, with the gap between buy and sell prices up to tens of millions of dong per bitcoin.   

Vietnamese go crazy over bitcoin

“Hundreds of digital currency trading floors, including forums, websites, Facebook and millions of bitcoin traders, are making the atmosphere as hot as summer. I don't understand what is happening,” said Le Huy Hoa, a technology expert.

At a trading floor, Hoa saw a quoted price of VND236 million per bitcoin that soared to VND251 million just one hour later. 

The gap between the sell and buy prices are always fluctuating. The sell/buy prices were VND251,037,625 – 246,055,865 and VND249,470,000 VND – 245,427,553 one hour later. But half an hour later, the prices were VND249,381,668 VND – 244,035,000. 

The prices were different at different trading floors. The prices were VND239,276,000 VND – 223,327,400 at another floor.

Hoa said that anyone can access the website of any trading floor and provide basic information including names, emails and phone numbers to register accounts and begin making transactions.

After completing a purchase transaction, the owner of the trading floor will transfer bitcoins into the registered account. Then he will be able to join other business activities, including investment authorization.

The procedure for investment authorization is simple: one person calls on another to contribute money to make an investment. After collecting money, the head of the team may commit to pay interest on the capital. Investors can withdraw money if they do no longer want to make investments.

An analyst said that in many cases the heads of the teams use the money contributed by later authorizers to pay to the previous authorizers. This could be seen as swindling. 

In its latest announcement, the central bank, citing the Criminal Code and relevant documents, said that bitcoin and other digital currencies are not recognized as legal payment instruments in Vietnam, and that people will be subject to criminal prosecution if they make payments in bitcoin.

Violators will be fined up to VND200 million from January 1, 2018.

However, analysts say some legal problems still exist. There is no legal document which says that bitcoin is ‘money’ or ‘goods’.

The owner of a trading floor also argues that bitcoin is not ‘money’ and ‘a payment instrument’, so it is not covered by current legal documents and that transactions in bitcoin do not violate any law.

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Thanh Lich