Vietnam Cryptocurrency Mining Rig Imports Halted as Proposal Ban Looms
Vietnam Proposes a Ban on Importation of All Cryptocurrency Miners
Earlier in the year, Vietnamese prime minister, Nguyen Xuan Phuc issued a directive against any credit institutions dealing with cryptocurrency related business. Fast forward to August and the Ministry of Industry and trade has offered a tougher proposal to ban the importation of cryptocurrency miners in the country.
This directive seems to have trickled down to the latest calls of banning Bitcoin (BTC) and Litecoin (LTC) mining machines in the country. The calls to ban entry of miners into the country has caused a decrease in the overall demand of mining rigs into the country.
Earlier last week the Ministry of Industry and Trade in Vietnam, supported by the State Bank of Vietnam (SBV) and other government agencies, propose a suspension of all cryptocurrency mining machines in the country. The ban came as a precaution to the improvement and management of transactions in the country as mining rigs heavily influenced the currency movement in the country.
This is a month after the national bank in Vietnam, SBV proposed the suspension of importing cryptocurrency mining rigs in the country.
Finally, the Ministry of Finance also issued complaints to list the mining rigs to goods banned by the state. Addition of these items to the list will make the enterprises dealing with purchase of these rigs, subject to passing the needed import procedures for specialized goods.
Vietnam has been one of the least favorable nations in Asia for cryptocurrency adoption with the recent ban on mining and tougher regulations on crypto further tightening up the field. The amended decree 101 on non-cash transactions states that control of cryptocurrencies and mining equipment will be difficult manage hence a possible increase in the use of BTC, LTC or other cryptocurrencies for transactions.
Effect Of Import Ban On Mining Machines In Vietnam
The department responsible for the imports and exports in Vietnam gave a report highlighting the overall mining machines imported to the country in 2017 and so far in 2018. One of the highest numbers came from Ho Chi Minh City (HCMC) which reported over 7000 BTC and LTC mining machines being imported to the country in 2017. This number halved to 3,664 cryptocurrency miners since the start of the year to August 6 as miners cited the increasing calls to ban the miners and overall low profits on Bitcoin and Litecoin mining so far in the year as the major reasons for such a huge decrease.
Questions of taxation are seen to be the major problem affecting the ban on importation of Bitcoin miners. Of the total Bitcoin mining machines imported during the year till August 6, four corporations were responsible for 82% (3000 miners) of the total machines while the rest were purchased by individuals and businesses without an import tax code.
Further reports from Vietnam Biz, showed that the Custom Department of Hanoi imported over 540 cryptocurrency miners in 2017, most of which are Antminers from China. As the dates draw closer to a total ban on mining rigs and cryptocurrency related activities in Vietnam, organizations, businesses and overall cryptocurrency enthusiasts have completely abandoned the importation of Bitcoin miners.