Vietnam’s new banking regulations have ignited another round of pro-Bitcoin arguments after reports surfaced that tens of millions of bank accounts are being shut down for failing to meet facial-recognition requirements.
Massive Account Closures Reported
Local outlets, including Vietnam+, have said that roughly 86 million bank accounts began closing on Sept. 1 because owners did not complete mandatory biometric checks. About 113 million accounts have already passed the new verification process, which authorities say is designed to combat fraud and money laundering.
One former foreign contractor described on Reddit how he was forced to fly back to Vietnam simply to update his facial data in person or risk losing access to his HSBC account—a process that, he noted, offered no remote alternative.
“This Is Why We Use Bitcoin”
The story quickly gained traction among cryptocurrency supporters. Commentators pointed out that strict state controls over personal funds are exactly what decentralized assets like Bitcoin were built to resist.
“If users don’t comply by the 30th of September, they’ll lose their money. This is why we Bitcoin,” wrote industry observer Marty Bent, while noting that similar crackdowns have occurred in countries from Lebanon to Nigeria.
Bitcoin advocate Daniel Batten argued that the mandate effectively grants Vietnam’s central bank powerful surveillance capabilities. In his view, holding Bitcoin is a way to avoid sudden, government-imposed conditions on personal savings.
Government Rationale
Vietnamese authorities say the new rules respond to a rise in sophisticated fraud. Police recently uncovered an AI-driven laundering operation that used fake facial scans to move about 1 trillion dong (roughly $39 million).
Under the policy, customers must complete an initial facial scan and repeat the process for any online transfer above 10 million dong (around $379), or for combined transfers exceeding 20 million dong (about $758).
Impact on Residents and Ex-Pats
According to a Vietnam-based crypto executive, most residents have adapted without major disruption; the stricter measures have mainly affected foreigners with inactive or rarely used accounts. Marketing executive Herbert Sim—known in the crypto space as the “Bitcoin Man”—added that dormant accounts and old phone or one-time-password bindings are particular problem areas.
