Cryptocurrency mining is considered a complicated topic. One of the things that is highly debated within the community today is the fact that cryptocurrency mining involves the use of a great amount of electricity. There are some countries such as China that has taken steps towards stopping crypto mining activities. And also, there are environmental concerns linked to crypto mining activities.
In fact, according to studies, Bitcoin mining activities from different parts of the world is already enough to power an entire country.
This time around, Vietnam is taking steps towards stopping crypto-related activities. Beginning July, both Vietnamese businesses and individuals are banned from importing crypto mining equipment according to the orders of the Ho Chi Minh Customs Department.
Growing Mining Activity in Vietnam
Last year, there were more than 7,000 Bitcoin and Litecoin miners that have been cleared by the Customs Department of Ho Chi Minh City. On the other hand, there were around 190 Bitcoin miners and 350 Litecoin miners that were cleared by the Customs Department of Hanoi.
As for this year, according to the Ho Chi Minh Customs Department, around 3,664 crypto miners have already been imported from the start of the year to August 6. Most of the imported mining equipment were actually from China.
According to a report, more than 3000 machines that entered the country this year were imported by those that don’t have a dedicated tax code. Also, from 2017 to April 2018, around 15,600 mining machines were imported into Vietnam according to the General Department of Customs.
A Ban on Crypto Mining?
Currently, Vietnam still doesn’t have the necessary rules and regulations that can address the crypto industry. According to the Ministry of Industry and Trade, they decided to call for the suspension of crypto mining machine importation. According to the Ministry of Industry and Trade, the goal of this move is to improve the management of currency transactions in the country.
This move is gaining support from other agencies. One of which is the State Bank of Vietnam which is the country’s central bank. What makes crypto mining rigs alarming on the part of the finance ministry is the fact that mining equipment are “not on the list of goods banned from importation and are not subject to the list of specialized management or unsafe goods, so enterprises are easily allowed to complete the import procedures”.
Measures on Crypto
In April, there Vietnam’s Prime Minister Nguyen Xuan Phuc signed a directive that is asking for a stricter measure on cryptocurrencies. The aim of this move is to ensure that cryptocurrencies are not going to be used for suspicious activities.
Crypto mining activities are popular in different parts of the globe despite the reality that the price of Bitcoin and other cryptos are currently down. However, a crackdown on crypto mining activities is now becoming a challenge, especially for businesses and individuals. Other countries have also attempted to ban crypto mining importation for different reasons. Some are banning crypto mining equipment to ensure that their currency is being used while there are those countries that are concerned about the energy needed to sustain crypto mining activities.