31st Sea Games - Vietnam 2021 Covid-19 Pandemic
Home / Economy / Trade - Service
Central Bank warns of illegal forex trading
Hai Yen 15:48, 2020/12/03
Investments in forex trading platforms, seen as illegal, would not be protected by law, said a senior official of the central bank.

Credit institutions with permission from the State Bank of Vietnam (SBV) are the only ones allowed to provide foreign exchange (FX) trading and derivatives services on the domestic and international markets.

 Vice Governor of the State Bank of Vietnam Dao Minh Tu at the press briefing. Photo: Nhat Bac. 

Investors should be cautious in participating in illegal forex trading platforms, said SBV’s Vice Governor Dao Minh Tu at a monthly government’s press briefing on December 2, referring to the case of growing numbers of such platforms are calling for investment with promises of soaring profit.

“So far, local authorities have not issued licence for any forex trading floor. Therefore, all transactions on these floors are illegal,” stressed Mr. Tu.

“Individuals investing in these platforms, seen as violating laws, would not be protected by law,” he noted.

Mr. Tu said during the Covid-19 crisis, legal businesses anywhere around the world could hardly guarantee profit of up to a couple of dozen percent, let alone promises for profit of hundreds of percent per year, which is a sign of fraud.

Vice Minister of Industry and Trade Do Thang Hai noted forex trading platforms in Vietnam are form of illegal multi-level marketing activities that pose high risks in terms of assets losses for investors.

“Those participating in these activities could be subject to a penalty of up to VND5 billion (US$217,500) or five-year jail term,” Mr. Hai stressed.

Some investors admitted greedy is a major reason for them to participate in forex trading activities. However, they argued a lack of legal framework regulating such activities has directly led to a growing number of such platforms operating publicly and attracting ill-informed investors.

TAG: Vietnam forex trading illegal covid-19 foreign exchange central bank SBV State Bank of Vietnam fraud
Other news
16:05, 2022/05/29
Handicrafts: Key to socio-economic growth of Hanoi's district
The value of industrial and craft production amounted to VND11.3 trillion (US$456 million) in January-September, up 9.2% year-on-year.
18:14, 2022/14/27
Hanoi's tourism shows strong recovery since March 2022
Eight months after the reopening of international travel, Hanoi has seen substantial development in the tourism sector.
07:24, 2022/24/26
Embassy key to boosting the Vietnam-Philippines economic relations: National Assembly Chairman
National Assembly chairman Vuong Dinh Hue visited the Vietnamese Embassy in the Philippines during his tour of this country.
22:11, 2022/11/25
Vietnamese firm exports first electric cars to the US
VinFast, the car-making arm of Vietnam's private conglomerate Vingroup, today shipped 999 electric units to the US.
21:59, 2022/59/25
Hanoi Midnight Sale offers high discounts to attract consumers
"Hanoi Midnight Sale" and "From online to street vending" are trade promotion events running at Big C Thang Long supermarket since November 24.
14:55, 2022/55/25
Vietnam’s rice exports to beat records in 2022
Vietnam is on track to export 7.2-7.3 million tons of rice in 2022, the second-highest export volume in the country's history.