Vietnam’s bank rules shut 86M accounts, boost BTC self-custody
-g8mMPLCN.jpg "Vietnam’s bank rules shut 86M accounts, boost BTC self-custody")
Vietnam began closing 86 million bank accounts that failed new biometric authentication rules, with Bitcoin supporters seizing on the crackdown to argue for permissionless cryptocurrency adoption and self-custody solutions.
The State Bank of Vietnam mandated facial biometric verification for all bank accounts, with non-compliant accounts shut down starting September 1. Officials reported that 113 million accounts have completed verification, while 86 million remain closed.
Bitcoin advocates immediately highlighted the account closures as evidence of centralized banking risks. They promoted cryptocurrency self-custody wallets as protection against government-imposed financial restrictions and surveillance measures.
The rules require customers to undergo facial scans to maintain account access. Online transfers above 10 million Vietnamese dong ($379) require additional biometric checks. Combined transfers above 20 million dong ($758) also need biometric confirmation.
Bitcoin advocates immediately highlighted the account closures as evidence of centralized banking risks. They promoted cryptocurrency self-custody wallets as protection against government-imposed financial restrictions and surveillance measures.
The rules require customers to undergo facial scans to maintain account access. Online transfers above 10 million Vietnamese dong ($379) require additional biometric checks. Combined transfers above 20 million dong ($758) also need biometric confirmation.
"This is why we Bitcoin," said industry commentator Marty Bent, warning that citizens could lose access to funds if they fail to comply with government requirements. Environmental advocate Daniel Batten criticized the policy for granting "next-gen financial surveillance ability" to Vietnam's central bank.
Local media reported that customers unable to update details in person, including foreign residents with inactive accounts, have seen their accounts frozen. Some expatriates described flying back to Vietnam to resolve issues, as no remote solution was offered.
Cryptocurrency proponents used the mass closures to promote Bitcoin and other decentralized assets as alternatives to traditional banking. They argued that self-custody of digital currencies protects users from arbitrary government banking policies and account freezes.
Vietnamese authorities introduced the biometric system after uncovering an AI-powered money laundering ring in May that used fake facial scans to move 1 trillion dong ($39 million). Officials said the new rules aim to curb fraud and financial crime.
Bitcoin supporters framed the policy as validation of cryptocurrency's core value proposition: financial sovereignty without dependence on traditional banking systems. They promoted hardware wallets and decentralized exchanges as tools for maintaining financial access regardless of government banking restrictions.
Local media reported that customers unable to update details in person, including foreign residents with inactive accounts, have seen their accounts frozen. Some expatriates described flying back to Vietnam to resolve issues, as no remote solution was offered.
Cryptocurrency proponents used the mass closures to promote Bitcoin and other decentralized assets as alternatives to traditional banking. They argued that self-custody of digital currencies protects users from arbitrary government banking policies and account freezes.
Vietnamese authorities introduced the biometric system after uncovering an AI-powered money laundering ring in May that used fake facial scans to move 1 trillion dong ($39 million). Officials said the new rules aim to curb fraud and financial crime.
Bitcoin supporters framed the policy as validation of cryptocurrency's core value proposition: financial sovereignty without dependence on traditional banking systems. They promoted hardware wallets and decentralized exchanges as tools for maintaining financial access regardless of government banking restrictions.
Author
Sebile Fane cut her teeth in blockchain by building tiny NFT experiments with friends in her living room, long before the buzzwords took hold. She’s driven by a curiosity for the human stories behind smart contracts — whether it’s a small-town artist minting her first token or a DAO voting on climate grants — and weaves technical insight with genuine empathy.
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