Illegal virtual currency and foreign exchange transactions: When will they be criminally handled?

The development of digital technology has made investment, virtual currency and foreign exchange activities increasingly popular. In addition to legal investment activities as prescribed by law, many individuals have participated in unlicensed exchanges, organized capital mobilization with virtual currencies or illegally traded foreign exchange, leading to many asset risks as well as legal liabilities.

In fact, not every transaction involving virtual currency or foreign exchange is subject to criminal prosecution. Whether an act is examined for criminal liability or only administratively handled will depend on the nature, purpose, method of implementation, consequences and provisions of the current law. Therefore, understanding the regulations correctly will help individuals and businesses limit unnecessary risks.

1. How does Vietnamese law regulate virtual currencies and foreign exchange?

1.1. Virtual Currencies Are Not a Legal Means of Payment

According to current regulations, Vietnam does not recognize virtual currencies such as Bitcoin, Ethereum and similar cryptocurrencies as legal means of payment.

The issuance, supply or use of virtual currencies as a means of payment may be handled in accordance with the provisions of the law on currency and banking.

However, the current law also does not have a provision to recognize virtual currencies as legal currencies or legal means of payment in civil transactions.

1.2. Foreign exchange activities must comply with the provisions of law

According to the Ordinance on Foreign Exchange (amended and supplemented) and its guiding documents, foreign exchange business activities and the provision of foreign exchange services must meet the statutory conditions and be carried out by subjects permitted by competent state agencies.

The purchase and sale of foreign currencies in contravention of regulations or the organization of illegal foreign exchange trading activities may be handled in accordance with the provisions of law.

2. When can virtual currency and foreign exchange transactions be criminally handled?

2.1. When the act has sufficient signs to constitute a crime

Not every transaction involving virtual currency or foreign exchange is subject to criminal prosecution.

Criminal handling is only imposed when the act has all the constituent signs of a crime specified in the Criminal Code 2015 (amended and supplemented in 2017). The determination of the crime must be based on the nature of the act, the purpose of commitment, the consequences and the legal factors of each case.

2.2. Taking advantage of virtual currency to commit criminal acts

In fact, virtual currency can be used as a tool in a number of illegal acts such as fraudulent appropriation of property, use of computer networks or telecommunications networks to commit acts of appropriation of assets, money laundering or other acts if it fully meets the signs of constituting a crime according to the provisions of the Criminal Code.

At that time, the criminal handling does not stem from the possession of virtual currency itself, but from the violation of the law committed through or related to virtual currency.

2.3. Trading foreign exchange in contravention of regulations in cases prescribed by law

For foreign exchange activities, if individuals or organizations commit serious violations and have sufficient grounds in accordance with the provisions of the Penal Code, they may be considered for penal liability examination.

Each case will be evaluated by the competent authority on the basis of all evidence, consequences, nature and danger of the act.

3. Acts that are prone to legal risks

3.1. Participation in Exchanges of Unknown Origin

Many exchanges operating on the internet are not licensed by the competent authorities in Vietnam but still promote with a commitment to high profits.

Joining these platforms can make investors face the risk of having their assets misappropriated or having difficulties when disputes arise.

3.2. Raising capital or calling for investment with virtual currency

Some individuals and organizations take advantage of the virtual currency investment model to mobilize capital from many people with unusual profit commitments.

If this activity shows signs of violating the law, the organizer or related persons may be held responsible in accordance with the law depending on each specific case.

3.3. Conducting foreign exchange transactions in contravention of regulations

The purchase and sale of foreign currencies or the organization of foreign exchange trading activities in contravention of the provisions of law may lead to the handling of administrative violations or be considered for penal liability if there are sufficient grounds as prescribed by law.

Therefore, individuals and businesses need to carefully study the legal regulations before making transactions related to foreign exchange.

4. How to limit legal risks?

4.1. Find out the law before investing

Before participating in any investment activities related to virtual currencies or foreign exchange, individuals need to carefully study the provisions of Vietnamese law as well as the legality of the investment platform or model.

Relying solely on advertising or profit commitments is very risky.

4.2. Do not participate in models with abnormal signs

Models that require attracting more participants, commit excessively high profits, or lack transparent information about the subject of the organization need to be carefully considered.

Participation in or support of these models can lead to serious legal consequences if the activity shows signs of violating the law.

4.3. Proactively consult a lawyer

If you intend to invest a large amount of money or participate in transactions with complex legal factors, individuals and businesses should consult a lawyer for advice on relevant risks and legal regulations.

This is a solution to help limit the risk of disputes or legal liabilities in the future.

5. When to contact a lawyer?

If an individual or business receives an invitation or summons from a competent authority, is investigated related to virtual currency and foreign exchange activities, or finds that he or she is a victim of investment models showing signs of violating the law, they should actively contact a lawyer at the initial stage.

Receiving timely advice and support will help determine your rights and obligations, prepare necessary documents and evidence, and choose appropriate handling plans in accordance with the law.

6. The role of lawyers in cases involving virtual currencies and foreign exchange

Cases related to virtual currencies and foreign exchange are often complex in nature because they can simultaneously involve civil, banking, investment, administrative violation handling and criminal law. Not every cryptocurrency or foreign exchange transaction is a violation of the law, nor is every violation subject to criminal prosecution. The assessment of legal liability should be based on all records, evidence, the purpose of the act and the specific provisions of the current law.

Lawyers will assist clients in analyzing the legal nature of the transaction, assessing the risks that may arise, advising on the rights and obligations of individuals and businesses when participating in activities related to virtual currency and foreign exchange. At the same time, the lawyer will assist in reviewing documents, collecting evidence, explaining to the competent authorities and proposing appropriate handling plans to maximize the protection of the client's legitimate rights and interests.

In case the case shows signs of being administratively handled or prosecuted according to the provisions of the Criminal Code, the lawyer will participate in defending or protecting the legitimate rights and interests of the client during the entire proceedings. Having a lawyer accompany you from the early stage not only helps limit legal risks but also contributes to ensuring that the client's rights are fully implemented in accordance with the law, and at the same time developing a handling plan suitable for each specific situation.

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(Written by: Doan Ngoc Khanh; Date written: 04/8/2026)