The State Bank of Vietnam requires reporting of international cryptocurrency transactions from 1,000 USD at the Fintech Center.

The State Bank of Vietnam has just released a draft Decree related to the establishment and operation of banks, foreign exchange management, as well as regulations on anti-money laundering, counter-terrorism financing, and the proliferation of weapons of mass destruction at the International Financial Center.

A highlight in the draft is the mandatory reporting requirement for international cryptocurrency transactions valued at $1,000 or more. This is seen as a measure to tighten control and reduce the risk of exploiting the Center to transfer capital abroad contrary to the policy of attracting capital flows to Vietnam.

According to Clause 4, Article 127, organizations subject to reporting at the Center will have to implement the reporting regime as stipulated for international remittances. This is explained by the fact that most transactions here are expected to go through the global payment system ( such as SWIFT ), so applying international standards from the beginning will help mitigate risks.

Currently, Circular 09/2023 of the State Bank has stipulated the reporting threshold for international transactions from 1,000 USD and domestic transactions from 500 million VND. This regulation will be directly applied to the operations at the Center.

The State Bank also confirmed that after the center officially operates, this agency will review and reassess the entire scale, volume, risk level, and capacity of the data system. Based on that, reporting regulations may be flexibly adjusted to better suit reality.

Additionally, the draft also specifies that members of the Center will not be allowed to raise funds from organizations or individuals in the country if they are not members. The State Bank will also not perform specific functions such as early intervention, restructuring, or providing special credit to these members, and will not carry out central banking operations with them.

In addition, the draft also specifies the responsibilities of reporting entities and related parties in complying with anti-money laundering measures. The coordination between the State Bank, the Central Supervisory Authority, the Ministry of Public Security, the Ministry of National Defense, and relevant ministries is considered the foundation for ensuring strict management in this specific financial sector.

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