Vietnam to Soon Have a Fully-Authorized Cryptocurrency Exchange

Vietnam is reportedly set to soon have a fully-authorized cryptocurrency exchange, as two firms in the country have recently signed a memorandum of understanding (MOU) for the production of a crypto trading platform, after obtaining a license for it.

According to a recently published press release, the largest distribution company in Vietnam, the Linh Thanh Group, is going to develop the trading platform along with Switzerland-based blockchain firm KRONN Ventures AG.

The move comes after KRONN Ventures formed a consortium with financial committees from various Asian countries, including Vietnam, Cambodia, Bangladesh, and Sri Lanka. Its goal was to “build an international wiring system using blockchain technology that fits with the Asian environment.”

The document notes that an official statement from the Linh Thanh Group has stated that working with KRONN Ventures will see both create “world-class cryptocurrency exchange,” as the latter is “known widely as a leader in blockchain technology in Switzerland.”

It adds:

The industry expectation is that by combining Linh Thanh Group's massive distribution network, which is the largest in Vietnam, with the world-class technology of KRONN Ventures, the impact will be widely felt not only in Vietnam but also in other surrounding Asian countries.

Notably, the Vietnamese government has last year seized the domain of the country’s oldest bitcoin exchange, after it was accused of providing e-commerce services without registering with the government.

The country’s Ministry of Justice has, back in November, suggested several ways cryptoasset could be regulated in the country. At the time Nguyen Thanh Tu, the director of the nation’s Department of Civil and Economic Laws, said authorities carefully examined the pros and cons of regulating cryptocurrencies.

 This, even though the government has been looking to ban bitcoin mining machine imports. The move was, at the time, being justified by the potential use of cryptocurrencies in illicit activities.

Kraken OTC Head Says It’s Too Early to Call Bitcoin a 'Safe Haven' Asset

Michael LaVere
  • Kraken head of OTC trading Nelson Minier says it's too early to call bitcoin a "safe haven" asset.
  • Compares the current atmosphere of crypto trading to how Wall Street used to be. 

Nelson Minier, head of over-the-counter (OTC) trading at crypto exchange Kraken, says that it is too early to call bitcoin a “safe haven” asset, despite the cryptocurrency gaining popularity in that regard. 

Too Early for Save Haven Status

In an interview with Nasdaq TradeTalks, Minier compared the current state of bitcoin and crypto-assets trading to how Wall Street used to operate in the past. 

According to Minier, 

Wall Street ain't what it used to be. The first 15 years I was on Wall Street, it was fun. I was very fortunate. I started in the CDS market which feels a lot like crypto. Here you have a lot of financial innovation, a lot of trading. It feels very much like that...there's a lot of energy and enthusiasm about this progress and where it's going.

Bitcoin has been gaining popularity as a so-called “safe haven” asset. According to the growing belief among analysts and investors, BTC is an attractive alternative to fiat and the traditional stock markets as a hedge against economic downturn. 

However, Minier believes it’s too early to label bitcoin as a safe haven, given the high price volatility. 

He continued, 

So, I’m not so sure that it’s a safe haven asset yet, but I do think that it’s starting to act like one. I think that people are starting to portfolio manage, are starting to come in slowly. And when the market is getting shaky you saw Bitcoin rise, I mean, you wouldn’t see that before, it was trading like a risky asset.

Despite calling bitcoin's safe haven status premature, Minier admitted that “we're heading that way for sure.”