The above issue was raised by the leaders of the Ministry of Industry and Trade at the regular Government press conference this evening (December 2), in response to reflections on the activities of the Liber Forex floor advertised in the UK. many signs of violating the law.
According to the reported content, Liber Forex is an advertised financial investment platform from the UK. Currently, Liber Forex has attracted many people to invest in a virtual currency called Libfx released by this exchange with many investment packages from 500 – 50,000 USD and very high interest rates of up to 192%/year.
In Vietnam, the law has clearly stipulated that only credit institutions and other organizations authorized by the State Bank can business foreign exchange transactions.
In addition to calling Calling for investment in virtual currency, Liber Forex also “promises” “very attractive” rewards and commissions for investors when inviting more participants to develop the system according to a multi-level model.</p >
Deputy Minister Do Thang Hai affirmed: “The Ministry of Industry and Trade has not issued a multi-level marketing registration certificate to any unit/organization named Liber or Liber Forex.
According to Mr. Hai, through information reflecting that Liber Forex operates as a financial investment platform, there are signs of attracting participants through multi-layered rewards, paying commissions to uplines according to downline performance results. Liber Forex’s activities as described show signs of multi-level business activities.
Leaders of the Ministry of Industry and Trade also cited the provisions of Decree No. 40/2018/ND-CP dated March 12, 2018 of the Government on the management of multi-level business activities. Multi-level business activities are only carried out for goods. All multi-level business activities with objects other than goods such as Liber Forex’s form of investment attraction are prohibited.
What recommendations does the Ministry of Industry and Trade have for people about the activities of Liber Forex floor and similar forms?
Deputy Minister Do Thang Hai said that the Ministry of Industry and Trade has issued warnings related to the activities of the application. this taste; recommends that people should not participate in investment transactions with the above entities and clearly state the reason for the risk of legal assets.
All participants’ transactions are through accounts opened on Internet system without a license from a management agency in Vietnam in case there are risk issues related to the system, the investment results of participants are not guaranteed.
< p>In addition, the money participants pay into the system is real money while the benefits or commissions recorded on the system are virtual currencies or e-wallets. These virtual currencies and e-wallets are not allowed. State management agencies recognize it as a legal payment tool. The Ministry of Industry and Trade has issued many warnings to people regarding similar forms” – Mr. Do Thang Hai informed.
On the other hand, investors also face other risks when participating in such activities. Financial investment floors of this type include: Revealing personal information secrets and being scammed by some fraudulent financial mobilization floors by modifying system orders (investors think they are investing according to market orders but In fact, if you bet against the floor, the floor will always lose) or even when enough participants pay money, the floor will… disappear.
About legal risks Deputy Minister of Industry and Trade emphasized: The operating model of Liber Forex and other financial investment floors with similar operating methods all show signs of illegal multi-level business in Vietnam.
Participating in this activity, in addition to the risk of property damage, participants are also abetting illegal activities. Organizations and individuals participating in mobilizing people to invest through the exchange can be handled according to Article 217a of the Penal Code and can be fined up to 5 billion VND or 5 years in prison” – Mr. Do Thang Hai clearly stated and said that based on the information collected, the Ministry of Industry and Trade has issued a document providing information about signs of illegal multi-level marketing to the relevant police agency for investigation and handling according to its authority.< /p>”
