After months of debate and uncertainty, the Vietnamese government decided to completely suspend the import of cryptocurrency mining equipment. In early July, the Ho Chi Minh City Customs Department announced that businesses and individuals had stopped further import of the equipment. According to Vietnam Customs, 9,300 ASIC devices were imported to Vietnam. Most of it into Ho Chi Minh City and Hanoi, in the past year. In the middle of this year the number reached 3,664. Four companies that are officially engaged in the import of this equipment imported nearly 3,000. Individuals or unreported channels purchased the rest. Most of the devices, which are Antminers, Bitmain manufactured.
Crypto frauds influenced the decision
The Vietnam’s Ministry of Finance proposed the ban for the first time in June, primarily due to the rise of various ICO scams. That involved 32,000 investors to lose several hundred million dollars. Consequently, the Vietnamese Prime Minister teamed up six ministers, the police and the central bank, to investigate this scam. One of these scams, which caused massive public rage, was Alos Coin (AOC). Their creators offered to the poor rural population the opportunity to quickly escape poverty through cryptocurrency. They promised investors annual interest rate of 180 percent, or 20 times higher than banks does. After it thousands of people sold their properties and homes to invest in AOC. They scammed over 1,400 people and investors have gone missing since then.
The last in a series of frauds is directly related to the import of mining equipment. Sky Mining has offered investors the opportunity to lease the mining equipment stored on Sky Mining premises. They also promised to give back the principal and interest, worth up to 300 percent of the investment capital, after 12 months. Vietnamese discovered the scam when one of the directors Le Minh Tam, escaped to the US with $35 million. This whole situation further strengthens the decision of the Vietnamese Central Bank to prohibit the use of cryptocurrency as a legal tender. They made decision at the beginning of the year. Anyone who uses the cryptocurrency as a legal mean of payment can be fined up to $9,000.