Vietnam Closes Another 86 Million Bank Accounts, A Week After Thailand Froze 3 Million

Vietnam is planning to close 86 million unverified bank accounts by the end of the year under biometric laws. 

Vietnam is preparing to close 86 million bank accounts that fail to meet biometric verification standards. The State Bank of Vietnam (SBV) confirmed that the move will take effect by September. 

The decision comes as part of an effort to secure the country’s financial system, curb fraud and push toward a cashless economy.

Why 86 Million Bank Accounts Will Be Closed

Vietnam had around 200 million bank accounts as of last year. However, after biometric checks, only 113 million personal and 711,000 organisational accounts were found to have been valid. 

This means that those who fail to update records will be shut down permanently.

The SBV said accounts without verified biometric data are highly vulnerable to scams. In other words, closing them is necessary to protect users and prevent abuse by fraud rings. Recent police reports showed cases where AI-driven facial spoofing helped criminals launder money through fake accounts.

Account holders are now facing stricter requirements. They must provide facial biometric scans not only to register accounts but also for online transfers above 10 million VND (about $379). 

Transactions over 20 million VND (or $758) require extra checks.

Vietnam’s Push Toward a Cashless Economy

The closures are part of Vietnam’s plan to promote digital payments. The SBV said non-cash transactions hit $11.57 trillion last year, which is more than 26 times the national GDP. 

Mobile banking and QR code payments saw growth as well, with QR usage rising over 80% early this year alone.

Authorities are now investing in infrastructure to support this growth. Government Project 06 has already verified biometric data for more than 111 million citizens. Banks, regulators, and technology firms are also working together to improve security standards.

The SBV believes these efforts will build trust in digital transactions. The ultimate goal is to reduce cash use (which continues to be common in rural areas) and move Vietnam closer to a fully digital economy.

How Crypto Fits Into Vietnam’s New Financial Rules

Vietnam’s digital overhaul is not limited to traditional banking. A new Law on Digital Technology Industry, which takes effect in January, gives crypto assets legal recognition.

The law makes a clear difference between virtual assets and crypto assets. It also requires compliance with anti-money laundering and cybersecurity measures. This step sets up Vietnam with international financial standards and provides a framework for businesses and investors.

Crypto advocates continue to see the law and the bank account closures as linked. 

They argue that strict biometric rules, like what Vietnam is doing, show the importance of self-custody options like Bitcoin. Some point to past cases in Lebanon, Turkey, and Nigeria where people lost access to funds under sudden banking restrictions.

Particularly, Thailand froze 3 million bank accounts overnight only last week, in what appears to be a continental move against banking fraud across Asia.

Public Reactions to the Bank Account Closures

The SBV insists that the process mainly affects inactive or unverified accounts. Local media reports indicate that most Vietnamese citizens have already updated their data. 

Still, foreigners with accounts in Vietnam have reported difficulties.

One Reddit user said he had to fly back to Vietnam just to update his HSBC account details. Without biometric checks, his account risked being shut down. Others noted that banks require in-person verification, which left them with no remote solution.

Overall, Vietnam’s banking reforms are moving quickly. The SBV expects all active accounts to meet biometric standards before the deadline in September. 

This will leave the country with fewer but safer accounts. Meanwhile, the calls for crypto as a solution to issues like these continue to intensify.

The post Vietnam Closes Another 86 Million Bank Accounts, A Week After Thailand Froze 3 Million appeared first on Live Bitcoin News.