SOLUTIONS FOR PREVENTION OF VIRTUAL CRIMINAL CRIMES IN INDUSTRY 4.0

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The technology revolution 4.0 has brought many benefits to users but also brought many risks. The following article, the lawyer would like to share about the solution to prevent cybercrime in the industrial revolution 4.0.
According to lieutenant colonel, PhD student DAO TRUNG HIEU (CAND Communications Department) – Industrial Revolution (CMCN) 4.0 is expected to have a profound impact on all aspects of socio-economic life. The appearance of crypto assets, new means of payment … is accompanied by an increase in new forms of violations and crimes in the digital environment. Therefore, building and perfecting the legal system to exploit the benefits and respond to the negative sides that Industry 4.0 brings is an inevitable requirement.
So far there has not been a unified concept of cryptocurrencies. Virtual money can be understood as a cryptocurrency or a digital currency created as a means of exchange. It uses difficult codes to protect and confirm transactions as well as to control newly created units of coins. Most importantly, cryptocurrencies are always limited to database entries so no one can make changes unless specific conditions are met.
According to kiemsat.vn, virtual currency has the following characteristics:
About the issuer: Virtual money is created or “mined” by a person or group of people on the basis of the application of modern technologies, encrypted and stored in a computer system with redeemable value. Expressed through a traditional currency (fiat). This makes cryptocurrencies a store of value and an investment tool.
About the payment function of virtual money: Virtual money can be bought, sold, exchanged, invested or as a means of payment in limited transactions. However, this payment function does not replace the traditional currency, because the nature of the virtual currency’s payment function in the transaction does not correspond to the role of an intermediary payment according to the law of parity. . In essence, virtual currency in this case is an asset accepted by the parties to exchange, with a value equivalent to the reciprocal assets and goods.
In terms of form of existence: Virtual money is created and stored in electronic form tied to the currencies of countries, its value is measured by the national currency. Therefore, virtual currency itself can only become a means of payment for electronic transactions, but not a payment currency for traditional transactions, because it does not exist in the world. objective circles.
Cryptocurrencies have become assets, means of payment, investment instruments, and methods of capital mobilization, but there are many contradictory views and approaches in many countries. There are countries that accept as a means of payment, but others do not recognize and do not allow circulation. Up to now, there is no legal framework for virtual currencies in the world.
In our country, the Government’s Decree No. 80/2016 / ND-CP amending and supplementing a number of articles of the Decree No. 101/2012 / ND-CP dated November 22, 2012 on non-cash payments On the one hand, virtual currency has been defined as an illegal means of payment in Vietnam. The issuance and use of virtual currency as currency and means of payment will be handled according to the Government’s Decree No. 96/2014 / ND-CP dated October 17, 2014 on administrative sanctions in the monetary sector. and the bank. In addition, according to the provisions of Point h, Clause 1, Article 206 of the Penal Code amended and supplemented in 2017, from January 1, 2018, the acts of issuing, supplying and using payment instruments. Illegal (including bitcoin and other similar virtual currencies) could result in criminal prosecution.
On July 21, 2017, the State Bank of Vietnam sent Official Letter 5747 / NHNN-PC to the Office of the Government notifying the non-recognition of Bitcoin as well as other virtual currencies as legal means of payment in Vietnam. At the same time, this agency has written prohibitions against credit institutions from using Bitcoin and other similar virtual currencies as a currency or means of payment; Credit institutions may not use Bitcoin and other similar currencies as a currency or means of payment when providing services to customers.
However, up to now, in our country, there is still no complete legal framework to officially regulate or regulate the issue of virtual money. Facing the exciting reality of life, the lack of a management tool and lack of clarity in the legal policy has made the issue of cryptocurrencies ambiguous, creating legal loopholes that are exploited and exploited by criminals. to commit the crime. Especially in recent times, the crime of multi-level fraud related to virtual money has been very complicated; Some typical cases can be mentioned:
In April 2018, the leader of Modern Tech Joint Stock Company (District 1, Ho Chi Minh City) was accused of appropriating more than 15,000 billion VND from investors. Accordingly, this company offers to buy iFan virtual currency, Pincoin, with the lowest profit commitment of 48% a month, 50-80 times higher than the interest rate for bank deposits, the maximum payback period of 4 months.

If you invite new people to buy virtual money will enjoy an additional 8%. To build trust, iFan or Pincoin is labeled as international currency, established in Singapore, India. The operator introduces iFan as a virtual currency used for showbiz related services. However, after 4 months of its inception, iFan collapsed and had no international transaction value. Investors are only left with a portfolio with a value of up to 15,000 billion VND but cannot withdraw, profit back to 0%. Victims are estimated to have around 32,000 people.
Or like the Sky Mining Company (also known as the Sky Technology Cooperative) is the next case of fraud. On July 23, 2018, many investors denounced that they could not contact Mr. Le Minh Tam – General Director of the company, some virtual money mining factories were cleaned up in the night. Up to 300 denunciations have been sent to the police. The investigation results determined that Sky Mining was promoting as the “largest virtual money mining company in Vietnam”, selling packages from 100 USD to 5,000 USD for investors to buy miners. After 12 months, the cooperative will return the capital and interest up to 300% of the investment. After paying, the company exports the device to the investor and they deposit it back to start mining virtual money. When Mr. Le Minh Tam disappeared, many people claimed that they were cheated by Sky Mining because they paid from 5 to 10 billion VND to get a profit of 0.6% per day without recovering their capital …
Virtual money fraud in Vietnam is often associated with a multi-level variable model, using the participants’ money after paying interest to the participant first. Essentially the so-called “trading virtual money” is just using this digital product to cover up for illegal financial mobilization. “Follow” the success of the Bitcoin currency, hit the greed and cult of advanced, trendy investment models, but ignorant about information technology, the subjects easily lure people people invest money in virtual currency worthless. Criminal tricks are often very sophisticated: First, virtual currencies are self-issued and self-priced. To conceal illegal fundraising, they require players to use cash to buy a digital currency of value like Bitcoin, then exchange it for virtual currency on their exchange. The zigzation of cash flows makes it difficult to prove the damage. In addition, the transaction from cash to virtual currency is mainly in the form of hand-to-hand at cafes, without any receipt. After the cash is transferred, the investor receives it back with the electronic wallet.
The above situation shows that it is time for Vietnam to study and complete the legal framework for virtual money completely. This requirement is completely consistent with the general trend of countries and is also a solution that Vietnam actively integrates as well as copes with the impact of Industry 4.0. The legal framework related to virtual currencies, when completed, will effectively limit, prevent and control risks and abuse related, and prevent frauds from appropriating assets in this field.
Orientation of completing the legal framework for virtual money
Regarding the direction to complete the legal framework on virtual money in the coming time, kiemsat.vn proposes an approach as follows:
First, do not recognize the function as a means of payment of virtual money and do not consider virtual currency as a currency.
Second, virtual currency should only be considered as a special asset that exists in an intangible form (digital asset), allowed to circulate with conditions, according to specific regulations; Virtual money can be the object of sale, exchange, donation, inheritance or can be used to secure the performance of obligations; allow and control public issuance (ICO) activities for cryptocurrencies; allows the establishment and control of virtual currency exchanges.
Third, it is necessary to collect taxes related to virtual currency.
Fourth, according to experience from Singapore, before finalizing the official legal framework, it is advisable to approach and introduce “soft” regulations, such as anti-money laundering regulations, tax evasion or customer identification. . This is how management will benefit all parties, including regulators, customers or investors.
While the legal framework on virtual money has not been finalized, in order to effectively prevent criminals fraudulently hiding the virtual currency business, according to the author, there should be an immediate measure as follows:
Firstly, the Ministry of Public Security shall assume the prime responsibility for, and coordinate with concerned ministries and branches in, intensifying the investigation, detection, prevention and timely handling of law violations related to the mobilization of finance and business. multi-level trading of virtual money, taking advantage of the banking system and payment system to trade, exchange, and use virtual money as a means of illegal payment. In particular, it is necessary to strengthen understanding of the situation on cyberspace and residential communities, to promptly detect illegal capital mobilization activities in the name of virtual currency trading, to promptly detect and inspect seminar activities are crowded with participants, to verify, clarify, prevent multi-level fraud activities related to virtual money.
Second, the State Bank of Vietnam needs to direct credit institutions The payment intermediary consulting organization is not allowed to conduct illegal virtual currency transactions. It is necessary to tighten control over transactions and activities related to virtual money; reviewing organizations and individuals that have transactions of buying, selling, exchanging virtual money, requesting credit institutions and intermediary payment service providers not to provide payment services, perform transactions. card translation, card credit, support for processing, payment, money transfer, clearing and settlement. At the same time, it is necessary to increase the review and timely reporting of suspicious transactions related to virtual currencies.
Thirdly, increase propaganda, raise awareness of people to differentiate virtual money and electronic money, and increase warnings about risks, risks and consequences of participating in trading and trading. illegal investment and trading in virtual money, using virtual money for criminal activities (money laundering, terrorism financing, illegal money transfers, tax evasion, fraud …).
Fourth, on the basis of research, selectively absorb international experience about virtual money, its relationship with real assets, real money; the role of and the impact of virtual currency on the law … in order to soon complete the legal framework on virtual currencies according to the principle of ensuring consistency, consistency, transparency, stability and predictability of the legal system. law, in accordance with international practices./.

(Nguồn tham khảo: Kiemsat.vn)

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