The State Bank of Vietnam (NHNN) has officially reported to the National Assembly that it has not granted licenses to any Forex exchanges operating within the country. This announcement comes amid rising concerns regarding the legality of Forex trading activities, which NHNN asserts do not fall within the scope of permitted foreign exchange operations.
In its recent report, NHNN emphasized that any payments or money transfers made abroad for Forex exchanges are also not permitted under current foreign exchange regulations. This regulatory stance is crucial, especially considering the increasing number of fraud cases linked to Forex activities that have emerged in the online space.
NHNN has been proactive in addressing these fraudulent activities by providing essential information regarding the existing legal framework for foreign exchange management to the Ministry of Public Security and various investigative police agencies. This collaboration aims to support ongoing investigations into fraud cases associated with Forex operations.
Illegal Forex activities are predominantly conducted online, posing significant challenges for regulatory bodies. As such, NHNN has called for coordinated efforts from several government agencies, including the Ministry of Culture, Sports and Tourism, the Ministry of Public Security, and the Ministry of Industry and Trade, to effectively detect, prevent, and manage these illegal operations.
In addition to addressing Forex-related issues, NHNN is also focusing on the future of digital currencies. The bank has reported that it is actively researching and proposing mechanisms and policies concerning central bank digital currency (CBDC). This initiative aligns with global trends as central banks worldwide explore digital currency options.
NHNN has engaged in various activities to enhance its understanding of CBDC, including participating in conferences, training sessions, and discussions with international experts from organizations such as the International Monetary Fund (IMF), the Bank for International Settlements (BIS), and the World Bank (WB). These efforts are aimed at gathering insights and knowledge that can inform Vietnam's approach to digital currency.
Moreover, NHNN is participating as an Observer in the CBDC mBridge project, which involves collaboration among four central banks: China, Hong Kong, Thailand, and the United Arab Emirates. This project aims to explore the potential of digital currencies in enhancing cross-border payments and financial systems.
As part of its responsibilities, NHNN has also been coordinating with various ministries and agencies to conduct research on CBDC. The bank has submitted reports to the Prime Minister detailing the implementation of CBDC initiatives in other countries and has proposed the establishment of a dedicated unit to lead research efforts in this area.
Currently, NHNN is following directives from the Deputy Prime Minister and continues to collaborate with relevant entities to propose actionable content related to digital currency development.
In summary, NHNN's firm stance against unlicensed Forex exchanges reflects its commitment to protecting consumers and maintaining the integrity of Vietnam's financial system. As the bank navigates the complexities of both Forex regulation and the burgeoning field of digital currencies, it remains focused on fostering a secure and compliant financial environment.
