A piece of news from Asia has been generating a lot of buzz among cryptocurrency enthusiasts: banks in Vietnam have started, since July, to block more than 86 million bank accounts that do not have biometric registration — now a mandatory requirement for customers.

According to the Vietnam Plus portal, starting September 1st, the State Bank of Vietnam officially began closing these accounts. The country has about 200 million active accounts, of which approximately 113 million have completed biometric registration.

According to the institution, the requirement aims to combat fraud, such as opening fake accounts to receive undue amounts, unauthorized withdrawals, and money laundering practices through digital banking services.

The issue gained relevance in the crypto community because it reinforces one of Bitcoin's central principles: protection against the arbitrary freezing of funds by authorities or financial institutions. On the blockchain, the private key gives the user total control over their resources.

Impact on investors

In the midst of this debate, a story reported by a Reddit user under the name Yukzor caught attention. The person claims to have worked for a while in Vietnam and moved, having kept an account in a local bank to receive money equivalent to the Guarantee Fund. However, when talking to the bank, they discovered that things wouldn't be so easy while in another country.

“Since I left, this biometrics law has been implemented. I tried to update online, but it sends a one-time password to a Vietnamese phone number that I no longer have. I called the bank and they didn't help. Basically, they said my only option is to go in person,” said Yukzov.

The Reddit user reported that the bank warned him that it will close his account this month if he does not go in person and update the biometrics. “I will also lose all the money I have in this account as soon as it is closed,” he added.

The TFTC (Truth for the Commoner) blog, which has a bitcoiner bias to address issues of economy and technology, provided an account of Yukzov's story and highlighted the power of Bitcoin in situations like this.

“Trusted third parties are security vulnerabilities and no one needs to live like that anymore. Bitcoin offers anyone the possibility to take control of their financial life and eliminate banks from their lives,” says TFTC. “Instead of asking for permission to access your money, which requires scanning your face or fingerprints, Bitcoin allows anyone to download software, create a pair of private-public keys, and secure their own money.”