- December 20, 2022
- Posted by: GBS
- Category: Business
The State Bank of Vietnam (SBV), the country’s central bank, has issued a number of circulars regarding cryptocurrency, including a ban on the use of bitcoin and other cryptocurrencies as a form of payment. However, the SBV has also recognized the potential of blockchain technology, the underlying technology behind cryptocurrency, and has encouraged the development of blockchain-based applications in areas such as supply chain management and financial services.
In 2019, the SBV issued a draft circular on the management of activities related to cryptocurrency and initial coin offerings (ICOs). The draft circular stated that ICOs are not considered legal fundraising activities in Vietnam and that any ICOs carried out in Vietnam must be registered with the SBV.
Despite the regulatory uncertainty, there has been a growing interest in cryptocurrency in Vietnam. Even though this interest has gone down during the last few months due to all the scandals in the crypto space. There are a number of exchanges and other platforms that allow investors to buy and sell cryptocurrency. However, it is important for investors to be aware of the risks associated with cryptocurrency, including the potential for price volatility and the lack of regulatory protection.
Choosing a crypto exchange
. Here are some factors to consider when choosing a crypto exchange:
- Regulation: Look for a crypto exchange that is regulated by a reputable financial authority, such as the Financial Conduct Authority (FCA) in the United Kingdom or the Commodity Futures Trading Commission (CFTC) in the United States.
- Security: Choose a crypto exchange that has strong security measures in place to protect your funds and personal information. This may include two-factor authentication, cold storage for digital assets, and other security measures.
- Fees: Compare the fees charged by different exchanges for buying, selling, and trading cryptocurrencies. Some exchanges charge lower fees for certain types of trades or for higher volume trades.
- Payment methods: Consider the payment methods accepted by the exchange, as this may affect your ability to buy and sell cryptocurrencies. Some exchanges only accept certain types of payment, such as bank transfers or credit card payments.
- Trading tools and resources: Look for an exchange that offers a range of trading tools and resources, such as charts, news feeds, and market analysis, to help you make informed investment decisions.
- Customer support: Choose an exchange that has a responsive and helpful customer support team to assist you with any questions or issues you may have.
Overall, it is important to do your due diligence and carefully consider all of the factors mentioned above when choosing a crypto exchange. It is also a good idea to seek the advice of a financial professional or do extensive research before making any investment decisions.
The crypt trading world is, unfortunately, full of scams. Here are some steps that investors can take to avoid cryptocurrency scams:
- Research the coin: Before investing in any cryptocurrency, it is important to research the coin and its management team thoroughly. Look for red flags, such as a lack of transparency or a history of rug pulls.
- Be wary of unrealistic promises: Be cautious of coin or individuals who promise unrealistic returns or guarantee profits. The cryptocurrency market is inherently risky and there is no guarantee of profits.
- Don’t give out personal or financial information: Be cautious of providing personal or financial information to anyone you don’t know or trust, as this information could be used to defraud you.
- Don’t let pressure to act quickly influence your decision: Scammers may try to pressure you into making a decision quickly, but it is important to take the time to thoroughly research and consider any investment decision before committing any money. Scammers use the fear of losing out as a motivator to get people to invest in projects they should know are scams.
- Use a reputable exchange: Choose a reputable crypto exchange that has strong security measures in place and is regulated by a reputable financial authority. The FTX scandals show why you should never trust an unregulated broker, even if they are well-known in the market.
Overall, the best way to avoid cryptocurrency scams is to be cautious and do your due diligence. Take the time to research companies and investment opportunities, and be wary of unrealistic promises or pressure to act quickly. By following these steps, investors can protect themselves from scams and make informed investment decisions.