Vietnam Bank Account Purge Boosts Bitcoin Appeal

Vietnam’s recent decision to delete over 86 million bank accounts underscores growing concerns over centralized control of personal finances. As biometric verification becomes mandatory, critics argue that the sweeping closures expose the vulnerability of traditional banking.

The event has sparked renewed interest in decentralized alternatives such as Bitcoin, which operates independently of government or institutional oversight.

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Vietnam Deletes Millions of Accounts Under New Biometric Rules

Vietnamese commercial banks began removing over 86 million bank accounts in early September 2025 after the State Bank of Vietnam (SBV) enforced new biometric requirements. Authorities say the policy targets accounts lacking face or fingerprint verification and aims to curb fraud, cybercrime, and money laundering.

The country has an estimated 200 million bank accounts. Following the nationwide review, approximately 113 million remained active. Accounts flagged as inactive or not updated with biometric data faced deletion, leaving many residents scrambling to meet compliance deadlines.

Foreign residents report particular challenges. In-person identity checks are mandatory, and remote options remain limited, creating hurdles for those outside Vietnam or unable to visit branches quickly. Critics argue the measures risk excluding vulnerable groups and may disrupt legitimate financial activity.

Global Context of Sudden Account Freezes

Vietnam’s sweeping action is not unique. Around the world, governments and financial institutions routinely freeze or seize funds, often without prior notice.

In China, rural bank customers in 2022 faced frozen deposits for months amid fraud investigations, prompting widespread protests. The US has long employed civil asset forfeiture, allowing law enforcement to seize assets even without a criminal conviction. In the UK, “Account Freezing Orders” empower authorities to block access when anti-money-laundering concerns arise.

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A notable example occurred during Canada’s 2022 trucker protests, when the government used emergency powers to freeze bank and crypto accounts linked to demonstrators and supporters. These incidents illustrate how quickly individuals can lose access to their own funds under centralized banking systems.

Rising Interest in Decentralized Alternatives

Supporters of decentralized finance view Vietnam’s move as a reminder of the fragility of traditional banking. An X user shared the news and said, “If users don’t comply by the 30th, they’ll lose their money. This is why we’re using Bitcoin”.

Centralized systems grant governments and banks ultimate control over deposits, meaning accounts can be frozen or deleted if policy or compliance demands shift.

The mandatory biometric integration further ties financial access to personal identity. While this strengthens security against fraud, it also concentrates risk: technical failures, human error, or changing political priorities can instantly restrict someone’s transaction ability.

By contrast, Bitcoin and other decentralized networks enable individuals to hold and transfer value without intermediaries. Transactions occur peer-to-peer, making arbitrary freezes or seizures far more difficult. Advocates argue that such autonomy represents genuine financial sovereignty, offering protection not only from cybercriminals but also from state overreach or unforeseen regulatory changes.