The Import-Export Department under the Ministry of Industry and Trade has recently requested the Ministry of Finance to take the lead in this endeavour.

Through research, the Import-Export Department found that cryptocurrency mining activities are not limited to specialized application-specific integrated circuits (ASIC) and video graphic array (VGA) cards, but also involve mobile devices such as smartphones used for gaming to earn Bitcoin, cloud platforms contracting with cryptocurrency mining companies, and even hard drive mining.

As technology continues to evolve, the Department noted, the diversity of cryptocurrency mining machines and activities is expected to increase, reminding that data processing machines and devices are versatile products that can be used for different purposes depending on the user’s intent.

To establish a basis for considering and proposing appropriate measures for managing the importation of cryptocurrency mining devices, the Department held it is crucial to accurately and fully identify the goods that need regulation, classify them, and assign specific HS codes. This would help avoid negative impacts on the production and business activities of organizations, enterprises, and individuals who use these data-processing devices.

Currently, Bitcoin mining machines (HS code 84715090) are not classified as prohibited imports, nor are they included on the list of goods subject to specialized management or requiring import licenses by the Ministry of Industry and Trade.

The importation of Bitcoin mining machines into Vietnam surged between 2017 and 2018, with around 30,000 such machines brought into the country. However, customs authorities struggled with the import procedures for these machines since they were not on the prohibited list, yet Bitcoin itself was not recognized as a legal currency by Vietnamese law.

At the time, various ministries and agencies held different views on whether to ban the import of such machines. Some, like the State Bank of Vietnam and the Ministry of Finance, supported suspending the import of automatic data-processing machines used for mining cryptocurrencies. Meanwhile, the then Ministry of Information and Communications believed that, until the specific HS codes were determined, only the import of ASIC mining machines should be temporarily halted, and this measure should not apply to VGA-based mining devices.

According to the Ministry of Industry and Trade, if a suspension of imports were to be applied, it would likely be ineffective and fail to achieve the intended regulatory goals due to the wide variety of cryptocurrency mining devices, especially in the era of Industry 4.0 and the explosion of information technology.

Vietnam has yet to legalize cryptocurrencies and related business activities. Digital currencies like Bitcoin are not recognized as a legal medium of exchange, and the State Bank of Vietnam has previously issued warnings regarding the risks associated with owning, trading, and using them. These risks include potential volatility, security issues, and the lack of legal protection for users involved in cryptocurrency transactions.

The Ministry of Finance says Vietnam will pilot the establishment of a cryptocurrency exchange as part of its efforts to develop and manage the digital currency market in an organized manner. It has submitted to the Government a draft decree on implementing a pilot programme for the issuing and trading of digital assets.

Vietnam to pilot cryptocurrency exchange operations in March

VOV.VN - Vietnam will pilot the establishment of a cryptocurrency exchange as part of its efforts to develop and manage the digital currency market in an organized manner, said Deputy Minister of Finance Nguyen Duc Chi at a government press conference in Hanoi on March 5.