Do not trade cryptocurrencies on unlicensed apps or exchanges

According to the State Securities Commission, in recent times, there have been cases of some organizations and individuals placing signs with the names of securities companies without a license, and organizing the operation of illegal applications and stock exchanges.

Specifically: Gate.io, GoldFinger Finance, Vietdiamondstocks, bawallet9.com, Londonex.com, ZenoMarkets.com, CHMarkets.com, JASS.com, DEXDN.com, LPL.com, TradeTime.com...).

Through social networks, these organizations and individuals call on investors to open accounts, deposit money into e-wallets, and invest in cryptocurrencies (Pi, USDT, BUSD, etc.) on stock exchanges that are not organized or operated by the Vietnam Stock Exchange (VNX) and its subsidiaries. After a period of time when they cannot withdraw money, or their investment accounts suffer serious losses, investors discover that there is fraud.

The State Securities Commission has advised investors that the Vietnamese legal system does not have any legal documents regulating digital assets and cryptocurrencies. Therefore, during this time, the State Securities Commission continues to advise investors to be extremely cautious when receiving investment invitations from individuals and organizations of unknown origin, especially those with high interest rates and profits, with signs of lack of transparency, and to be vigilant when receiving invitations to invest in virtual assets, cryptocurrencies, or to participate in securities and virtual assets transactions on unlicensed stock exchanges.

When trading, investors need to check information on the exchanges (including licensing agencies, exchange management, trading mechanisms, rights and obligations of the parties) to have a legal basis to protect their rights and limit the risk of loss of assets.

To participate in securities trading, investors must comply with the securities law on opening securities trading accounts at securities companies licensed to establish and operate by the State Securities Commission. In addition, investors must pay attention to the legal regulations on types of securities allowed to be traded at VNX, as stipulated in Clause 1, Article 4 of the Securities Law No. 54/2019/QH14 dated November 26, 2019.

Specifically, the Law on Securities stipulates that Securities are assets, including the following types: stocks, bonds, fund certificates; warrants, secured warrants, stock purchase rights, depository certificates; derivative securities; other types of securities prescribed by the Government.

Accordingly, digital currencies such as Pi, USDT, BUSD... are not securities and the buying and selling of the above digital currencies by investors is not regulated by law.

In addition, according to the provisions of Clauses 26 and 27, Article 4 on the concepts of "Securities trading system" and "Securities trading market", Article 42 on "Organization of securities trading market" of Securities Law No. 54/2019/QH14, only VNX and its subsidiaries, Hanoi Stock Exchange (HNX) and Ho Chi Minh City Stock Exchange (HoSE) are allowed to organize securities trading markets.

Apart from VNX and its subsidiaries (including HoSE, HNX), no organization or individual is allowed to organize and operate the stock market. Therefore, the State Securities Commission does not manage trading floors such as Gate.io, GoldFinger Finance, Vietdiamondstocks... and trading activities on these floors.

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