Investors be careful not to pour money into "ghost" securities companies.

In a recent announcement, the State Securities Commission said that recently, there have been cases of some organizations and individuals placing signs with the names of securities companies without a license.

Organizations operating illegal stock exchange applications and platforms include: Gate.io, GoldFinger Finance, Vietdiamondstocks, bawallet9.com, Londonex.com, ZenoMarkets.com, CHMarkets.com, JASS.com, DEXDN.com, LPL.com, TradeTime.com, ... through social networks, calling on investors to open accounts, deposit money into e-wallets, invest in cryptocurrencies (Pi, USDT, BUSD, ...) on stock exchanges not organized and operated by the Vietnam Stock Exchange and its subsidiaries.

Investors need to be careful to put money into securities companies, image 1 — Illustration photo. (Source: NA)

After a period of not being able to withdraw money, or the investment account suffering serious losses, the investor discovers that there is fraud.

The State Securities Commission has advised investors that the Vietnamese legal system does not have legal documents regulating digital assets and cryptocurrencies.

Therefore, during this time, the State Securities Commission continues to recommend that investors 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 be vigilant when receiving invitations to invest in virtual assets, cryptocurrencies, or to participate in securities and virtual asset 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 need to comply with securities laws on opening securities trading accounts at securities companies licensed to establish and operate by the State Securities Commission.

In addition, investors need to pay attention to the legal regulations on types of securities allowed to be traded at the Vietnam Stock Exchange, as stipulated in Clause 1, Article 4 of the Securities Law No. 54/2019/QH14 dated November 26, 2019: “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 the Vietnam Stock Exchange and its subsidiaries, the Hanoi Stock Exchange and the Ho Chi Minh City Stock Exchange, are allowed to organize the securities trading market. Apart from the Vietnam Stock Exchange and its subsidiaries (including the Ho Chi Minh City Stock Exchange and the Hanoi Stock Exchange), no organization or individual is allowed to organize and operate the securities market.

Therefore, the Securities and Exchange Commission does not regulate exchanges such as Gate.io, GoldFinger Finance, Vietdiamondstocks… and trading activities on these exchanges.

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