On July 12, 2022, the State Bank of Vietnam (“SBV”) issued Circular 09/2022/TT-NHNN (“Circular 09”) guiding foreign exchange management for prize-winning electronic games for foreigners.
This Circular contains a number of amendments and supplementations related to the activities and responsibilities of enterprises related to the use of foreign currency for the business of prize-winning electronic games for foreigners, specifically:
1. Supplementation of a way to determine the exchange rate of token on lay-days and holidays: based on the exchange rate of the previous trading day.
2. Supplementation of strict regulations for enterprises’ accounts specialized for foreign currencies and foreign currency cash funds:
Circular 09 clearly states that accounts specialized for foreign currencies and foreign currency cash funds, of enterprises licensed by the VSB for foreign currency receipts and payments and other foreign exchange activities, may only be used for business activities at 01 prize-winning electronic game point. This content specify and is consistent with Article 5 of Decree No. 121/2021/ND-CP dated 27/12/2021 of the Government on the business of prize-winning games for foreigners.
3. Supplementation of conditions for enterprises to buy foreign currencies for the business of prize-winning video games:
According to the previous regulations in Article 15.8 of Circular 15/2014/TT-NHNN, the purchase of foreign currencies for the business of prize-winning electronic games of an enterprise is only required to satisfy two conditions: (1) within the scope of foreign currency receipts and expenditures and other foreign exchange activities as prescribed; and (2) have documents and papers to ensure the transaction legality and validity.
However, Article 12.7 of Circular 09 has added the condition (3), which is: the foreign currency purchase can only be made in case the foreign currency cash fund, the remaining foreign currencies on the specialized foreign curency account and payment foreign curency account are not enough to meet payment and receipt needs of foreign currency cash for the business of prize-winning electronic games as regulated.
This indicates the policy of the State in strengthening the management of the use of foreign currencies in the territory of Vietnam.
This Circular shall take effect from September 1, 2022, replacing Circulars 15/2014/TT-NHNN and Circular 11/2017/TT-NHNN (amending and supplementing Circular 15/2014/TT-NHNN).
Comment: