Forex Trading Platforms Are Illegal in Vietnam

Since a large number of FX firms realized that there was a land of opportunity in the Far East, foreign exchange activities, as well as the forex scams, have significantly increased in the regions including Malaysia, Indonesia and Vietnam.

Scams are booming in Vietnam's market

Vietnam is one of the countries in Southeast Asia percieved to lack accountability in finances. This perception hasn't stopped investors from going into forex trading. The number of searches from Vietnam for the word "forex" has been increasing gradually in the last five years according to Google Trends data.

Although the foreign exchange market has been around in Vietnam for long, it has never been legalized.

There are chances that local investors may have come across advertisements of online forex trading platforms on social media. Many of the companies also advertise in the local languages. The ad, typically, talks about how you can easily trade in the forex market and make quick money. Many of these forex trading platforms are popular around the globe. However, they are illegal in Vietnam.

Official release: forex platforms are illegitimate

“Investors should be cautious in participating in illegal forex trading platforms,” the State Bank of Vietnam (SBV)’s Deputy governor Dao Minh Tu said at a government press briefing On March 2020.”So far, local authorities have not issued licence for any forex trading floor. Therefore, all transactions on these floors are illegal.”

Furthermore, Mr. Tu stressed that Individuals investing in these platforms, seen as violating laws, would not be protected by law.

Deputy Minister of Industry and Trade Do Thang Hai said that those convicted of such illegal activity face a fine of up to VND5 billion ($216,400) or five years in jail.

During a regular government press meeting on March 2, 2021, Mr. Tu identified that foreign currency trading and derivative services can only be provided by licensed credit institutions and commercial banks and the central bank has not licensed any organization to run these services.

Vietnamese investors should be careful with forex trading

On social medias, Vietnamese forex groups have hundreds of thousands of members who make hundreds of posts every day, with brokers touting returns of 30-60 percent a month.

Investors should note that forex trading platforms in Vietnam are form of illegal multi-level marketing activities that pose high risks in terms of assets losses. The authorities have not issued license for any forex trading floor, so all foreign exchange (forex) trading activities in Vietnam are illegal.