Vietnam Sounds Warning on Bitcoin, Bars Usage

Another government is jumping on the “ban bitcoin usage” wagon — as if the community needed any more bad news following this week. This time around it’s communist Vietnam, who said trading or transacting bitcoins and/or other forms of digital currency are prohibited. The warning particularly was geared toward credit institutions, who may not participate in bitcoin trades or offer services related to digital currency.

The statement comes from the country’s central bank, who said “[transacting] bitcoin is highly anonymous so bitcoin can become a tool for crimes like money laundering, drug trafficking, tax evasion, illegal payment,” also noting that “[t]he price of bitcoin fluctuates over a short time so investments in bitcoin are risky.”

The central bank did not state what the penalties would be for those who violate the instructions, so it’s unclear whether or not enthusiasts in the country will comply.

The Hindu reports that access to bitcoin blogs and news websites have been blocked in the country.

The warning comes amid an ongoing drama with Mt. Gox, who reportedly lost millions of dollars worth of bitcoin that belonged to customers due to an internal software issue. The company today filed for bankruptcy protection.

[source: AP, PFHub, The Hindu]