Vietnam has reportedly closed approximately 86 million bank accounts due to non-compliance with a new facial biometric authentication mandate. While the government aims to curb fraud and money laundering, the strict implementation has drawn criticism from Bitcoin advocates who view it as an infringement on financial freedom and control.
Key Takeaways
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Vietnam has closed 86 million bank accounts for failing to meet new biometric verification requirements.
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The mandate aims to combat fraud and money laundering, with over 113 million accounts successfully verified.
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Bitcoin proponents argue this highlights the need for decentralized financial systems free from government oversight.
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Some reports suggest the impact is primarily on foreign residents with inactive accounts, with local outcry minimal.
Biometric Mandate Implementation
Reports indicate that starting September 1, Vietnam began closing bank accounts that did not comply with the new biometric laws. These regulations require customers to undergo facial biometric authentication for initial setup and for online transfers exceeding 10 million Vietnamese dong (approximately $379). The State Bank of Vietnam introduced these measures in response to an increase in sophisticated fraud techniques, including AI-powered scams.
One account from a former foreign contractor in Vietnam highlighted the inconvenience, stating the need to physically return to the country to update biometrics for an HSBC account, with no remote solution offered. This situation has fueled the argument among Bitcoin enthusiasts that such requirements underscore the importance of decentralized financial systems.
Bitcoiners' Response and Financial Inclusion Concerns
Bitcoin advocates have long championed the principle of individuals having unrestricted access to their funds, free from external interference. Commentators like Marty Bent have used Vietnam's stringent measures as a prime example of why decentralized cryptocurrencies like Bitcoin are essential. "If users don’t comply by the 30th [of September] they’ll lose their money. This is why we Bitcoin," Bent stated, emphasizing the potential for state overreach in traditional finance.
Daniel Batten, a Bitcoin environmentalist, suggested that these biometric requirements grant Vietnam's central bank significant surveillance capabilities. He argued that using Bitcoin correctly eliminates the need to worry about government mandates regarding biometric verification, presenting it as a powerful, yet largely unrecognized, financial tool.
Nuances and Local Impact
However, some perspectives suggest the situation might be overblown. A crypto executive based in Vietnam indicated that the majority of local citizens have not been significantly affected. The issue appears to be more pronounced for foreign residents, particularly those with inactive or forgotten accounts, or individuals who have left the country. Herbert Sim, also known as "Bitcoin Man," noted that the requirement for in-person biometric verification, coupled with OTP and phone-binding, presents substantial hurdles, especially for this demographic.
Sources
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Bitcoiners Slam Vietnam For Closing 86 Million Bank Accounts, Cointelegraph.
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