Economy

Vietnam Shuts Down Millions of Bank Accounts Over Biometric Rules

ICOBench By Patrick Johnson,
Tags
biometric tracking
Biometric Payments
digital ID

Vietnam has begun a sweeping crackdown on bank accounts that fail to comply with its new mandatory facial biometric identification system, sparking debate over financial inclusion and whether cryptocurrencies like Bitcoin offer a viable alternative for affected users.

Biometric Verification Now Required

As of September 1, 2025, banks across Vietnam are closing accounts deemed inactive or non-compliant with new biometric rules. Authorities estimate that more than 86 million accounts out of roughly 200 million are at risk if users fail to update their identity verification.

The State Bank of Vietnam has also introduced stricter thresholds for transactions:

  • Facial authentication is mandatory for online transfers above 10 million VND (about $379).
  • Cumulative daily transfers over 20 million VND ($758) also require biometric approval.

The policy is part of the central bank’s broader “cashless” strategy, aimed at combating fraud, identity theft, and deepfake-enabled scams.