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Regulators

First crypto exchange in Vietnam received a license

Maya Mandz | Mar. 29, 2019
First crypto exchange in Vietnam received a license

March 29, 2019, | AtoZ Markets - The first crypto exchange in Vietnam launch announced this week. Vietnam will receive its first licensed crypto exchange, thanks to the Memorandum of Understanding between Link Thanh Group, the country's largest national distribution group, and Kronn Ventures AG, a blockchain-based company from Zug, a Swiss crypto-valley.

Result of the productive collaboration

According to a recent press release, both companies Kronn Ventures AG and the Linh Thanh Group have signed a memorandum of understanding (MOU) for the production of crypto-systems and the creation of a crypto-exchange in Vietnam. Both industries expect that through the integration of the large distribution network of the Linh Thanh Group with world-class technology of Kronn Ventures, influence will be felt throughout Asia.

First crypto exchange in Vietnam co-founders in a brief

Linh Thanh Group is the largest distributors in Vietnam. The company was established in 2003 and is specialized in the export of many Vietnam agricultural products and seafood and also the import of bearings and all kind industrial materials and machines.

Kronn Ventures is a blockchain-based company from Zug, Switzerland. KRONN claims to have a license to work, but Vietnamese lawmakers, although they have banned activities related to cryptography, are still discussing how to approach cryptography in the long run.

The discussion started in 2018

A year ago, Kronn Ventures formed a consortium with financial committees of Vietnam, the Philippines, Cambodia, Bangladesh, and Sri Lanka, to create an international electrical wiring system using blockchain technology that compatible with the Asian environment. Reportedly, since the Linh Thanh Group was the first to make a deal, the rest of the consortium members began to fear that they would be prevented from running a transnational wiring system. The Linh Thanh group states that working with Kronn Ventures will lead to the development of a world-class crypto-exchange.

The local regulators stay positive toward crypto exchanges

Although the financial and industrial giants continue worshiping an idea of the blockchain invasion into the world, there are certain concerns that have been following this technology since its introduction in 2008. The major questions users raise are about security and the safety of the blockchain network and the crypto exchanges in particular. Last year in Vietnam, occurred one of the largest fraudulent cryptocurrency transactions. The company managed to lure $ 658 million from investors through fraudulent ICO projects. This news caused outrage in Vietnam, and Deputy Prime Minister Vuong Dinh Hue demanded its thorough investigation. The fraud had resulted in stricter regulations to protect investors from market risks. However, the official approval of the exchange means that the authorities are aware that there is still some potential in the crypto space.

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