Risky to invest in forex trading plaforms: Deputy Governor

Thursday, Mar 04, 2021 08:10

Until now, no forex trading platforms had been licensed for operation in Viet Nam. — File Photo

Forex trading via investment platforms had not been licensed in Viet Nam, posing significant risks to investors, Deputy Governor of the State Bank of Viet Nam Dao Minh Tu warned.

Tu said at the Government’s meeting on Tuesday in Ha Noi that the operation of forex trading platforms was currently illegal, adding that the trading of foreign currencies and derivatives must be provided by credit institutions and commercial banks licensed by the State Bank of Viet Nam.

Until now, no forex trading platforms had been licensed for trading, he stressed, warning about risks when investing via these platforms.

Recently, some organisations like Lion Group called for investments in forex through Fx Trading Markets with attractive interest rates of up to 300 per cent per year and commissions. Lion Group attracted around 40,000 investors nationwide.

Tu urged people to be cautious with these appealing calls, adding that there were signs of in-transparencies and frauds.

“The skyrocketing profits in the current situation are impossible and investors must be cautious before deciding to pour money in forex trading platforms,” Tu said.

The Ministry of Industry and Trade also said that the business model of Lion Group or other forex trading platform was not compliant with the established regulations about multi-level marketing businesses.

Relevant management agencies must introduce regulations for the operation of these models.

Regarding payments, Tu said that there were more and more oganisations providing payment services along with the development of technologies, adding that the central bank always focused on ensuring safety and convenience in payment.

He urged attention to be paid to protecting personal data to ensure security in conducting payment transactions.

Tu stressed that bitcoin and other cryptocurrencies were not legal means of payment in Viet Nam. The trading and use of cryptocurrencies were illegal.

Cryptocurrencies were not electronic currencies, Tu said, adding that the State Bank of Viet Nam, the Ministry of Finance and the Ministry of Justice were studying the legal framework to manage cryptocurrencies and other virtual assets. — VNS

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