The State Securities Commission recommends investors not to trade cryptocurrencies on illegal exchanges.

Recently, the State Securities Commission (SSC) issued a notice advising investors about participating in cryptocurrency transactions on applications and stock exchanges that are not licensed by the SSC.

Specifically, the State Securities Commission said that recently, there has been a phenomenon of some organizations and individuals placing signs under the names of securities companies without a license, organizing the operation of applications and illegal securities trading floors such as Gate.io, GoldFinger Finance, Vietdiamondstocks, bawallet9.com, Londonex.com, ZenoMarkets.com, CHMarkets.com, JASS.com, DEXDN.com, LPL.com, TradeTime.com,...

In addition, these organizations, through social networks, call on investors to open accounts, deposit money into e-wallets, and invest in cryptocurrencies (Pi, USDT, BUSD, etc.) on stock exchanges not organized or operated by the Vietnam Stock Exchange and its subsidiaries.

“After a period of time when money cannot be withdrawn, or the investment account suffers serious losses, the investor discovers that there is fraud,” said the State Securities Commission.

In its recommendations to investors, the management agency emphasized that the Vietnamese legal system does not yet have legal documents regulating digital assets and cryptocurrencies.

Therefore, during this time, investors need to be extremely careful 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 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 dated November 26, 2019: “Securities are assets, including the following types: Stocks, bonds, fund certificates; Warrants, covered warrants, stock purchase rights, depository certificates; Derivative securities; Other types of securities prescribed by the Government ”.

Accordingly, digital currencies such as Pi, USDT, BUSD, etc. 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, only the Vietnam Stock Exchange (VSE) and its subsidiaries, the Hanoi Stock Exchange and the Ho Chi Minh City Stock Exchange, are allowed to organize securities trading markets.

Apart from the Vietnam Stock Exchange and its subsidiaries (including Ho Chi Minh City Stock Exchange and Hanoi Stock Exchange), 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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