Vietnam bank account closures affected roughly 86 million dormant or non-compliant accounts after a facial biometric mandate; authorities verified another 113 million accounts. Bitcoin advocates say the closures highlight why self-custody of Bitcoin can protect access to funds from biometric mandates and capital controls.
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86 million accounts closed
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Remaining 113 million accounts verified under new biometric rules
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Biometric checks apply to transfers over 10 million VND and combined transactions over 20 million VND
Vietnam bank account closures: 86 million accounts reportedly closed after a facial biometric mandate—learn what changed and how Bitcoin advocates respond. Read practical protection steps.
Vietnam is reportedly closing 86 million bank accounts. Crypto advocates see it as the latest reason everyone should hold Bitcoin.
Reports indicate Vietnam began closing roughly 86 million bank accounts that failed to complete mandatory facial biometric authentication when the new rule took effect. Officials and affected customers say the measure aims to curb fraud but has left some account holders, particularly foreigners and holders of inactive accounts, unable to access funds without in-person verification.
What are Vietnam bank account closures and why were they implemented?
Vietnam bank account closures refer to the shutdown of accounts that did not meet a new facial biometric authentication mandate introduced by the State Bank of Vietnam. The measure is framed as an anti-fraud and anti–money laundering step after a rise in AI-powered spoofing, and authorities reported large-scale account verification and closures beginning Sept. 1.
How does the facial biometric authentication rule work?
The rule requires a first-time facial biometric check for account registration and a second verification for online transfers over 10 million VND (~$379). Combined transactions above 20 million VND (~$758) also trigger biometric re-authentication. Vietnamese police say the step followed arrests of an AI-enabled money laundering ring that allegedly moved about 1 trillion VND (~$39 million).
Response from Reddit user “stnlywlkr” Source: Reddit
Firsthand reports from expatriates and social posts indicate some banks required in-person biometric updates with no remote alternative. A Reddit user identified as “Yukzor,” a former foreign contractor in Vietnam, said he was told to return to the country or face account closure.
Why are Bitcoin proponents citing this as proof of need for self-custody?
Bitcoin advocates argue that state-imposed access controls, like biometric mandates or capital movement restrictions, can render bank-held funds inaccessible. Commentators such as Marty Bent and Daniel Batten, cited in industry commentary, say permissionless protocols like Bitcoin provide a hedge because private keys allow direct control of value without bank intermediaries or biometric gates.
Source: Daniel Batten
At the same time, local industry sources and a crypto executive in Vietnam stressed the impact appears concentrated on inactive or foreign-held accounts rather than mass disruption of daily banking for most residents. Herbert Sim, chief marketing officer at AICEAN and known in some circles as the “Bitcoin Man,” noted that one-time passwords and phone‑bindings complicate remote compliance for non-residents.
When did the verification and closures start?
Authorities began implementing the biometric verification regime on Sept. 1, with deadlines later in the month for accounts that had not been updated. Public reporting places many closures in early September; officials and banks handled verifications through late summer updates from the State Bank of Vietnam.
Frequently Asked Questions
Will closed accounts lose customer funds permanently?
There is no universal confirmation that funds are permanently unrecoverable; outcomes depend on bank policies and whether account holders can later satisfy verification requirements. Industry reporting cautions that some closures target dormant or inactive accounts.
Can foreigners verify accounts remotely?
Reports indicate many banks required in-person biometric updates, making remote verification difficult for non-residents. Affected foreigners often face travel or embassy‑assisted solutions.
Key Takeaways
- Scale of closures: Around 86 million accounts reportedly closed; 113 million verified under new rules.
- Biometric thresholds: Verification required for first-time setup and for transfers >10M VND; combined transactions >20M VND also trigger checks.
- Practical action: Check account status, update verification, and consider self-custody options for critical savings.
Conclusion
The reported Vietnam bank account closures underline tensions between fraud prevention and account access. The biometric mandate aims to curb AI‑enabled spoofing and money laundering, but it has also created access challenges for some users. For those concerned about state or banking access controls, strengthening identity channels and evaluating permissionless custody options—such as securely held Bitcoin—are pragmatic steps to preserve access to value.
