Vietnam is preparing to regulate cryptocurrencies. The Vietnamese government has requested proposals to establish a legal framework for digital assets this March, seeking regulatory clarity and promoting its economic growth.
Several local media outlets have reported that the Vietnamese government is stepping up its efforts to regulate the cryptocurrency market. Recently, it instructed the Ministry of Finance and the State Bank of Vietnam to develop a legal framework for cryptocurrencies and digital assets.
According to media reports, this initiative, which is led by Prime Minister Pham Minh Chinh, seeks to Establish clear rules for companies operating in the cryptocurrency sector, while seeking to position Vietnam as an innovation-friendly jurisdiction.
PREPARE YOUR WALLETThe Vietnamese government’s mandate comes amid growing interest in and adoption of cryptocurrencies. Despite the lack of a defined regulatory framework, the country has shown remarkable enthusiasm for digital assets, ranking among the top globally in terms of cryptocurrency ownership. This situation has led the government to look for ways to establish policies and legal frameworks that will allow it to effectively manage and promote the development of this type of asset.
Ministry of Finance leads cryptocurrency regulatory initiative in Vietnam
The Ministry of Finance will assume the primary responsibility for developing this legal framework. According to the government portal, this ministry will work in coordination with the State Bank of Vietnam. Both will be responsible for proposing and submitting to the Government a proposal to regulate the management and development of digital assets and digital currencies. The aim is to create a healthy and effective environment for this type of assets, taking advantage of their potential to boost the country's economic growth.
Other local sources have noted that the Vietnamese government is particularly interested in learning from other countries that have successfully implemented regulatory frameworks for cryptocurrencies. The new legal framework is expected to address key aspects such as investor protection, anti-money laundering and taxation of profits made through cryptocurrencies.
BUY BITCOINTran Huyen Dinh, Chairman of the Digital Assets – Fintech Committee of the Vietnam Blockchain Association, commented that Vietnam has a great opportunity to tap into the revenue from digital asset transactions. If a personal income tax rate of 0,1% is applied to securities transactions, more than $800 million in taxes can be collected each year.
Cryptocurrency adoption and challenges in Vietnam
Despite the absence of clear legislation, Vietnam has emerged as one of the countries with the highest adoption of cryptocurrencies. Statistics, such as those presented by Chainalysis in its Global Crypto Asset Adoption Reports, indicate that a significant portion of the Vietnamese population owns digital assets. However, this growing adoption has also posed challenges for regulators, especially in terms of consumer protection and financial stability.
The lack of clear regulation addressing cryptocurrency innovation has led many companies in the sector to operate outside the country, establishing themselves in neighbouring jurisdictions with more defined legal frameworks. According to local media, this has led to a loss of tax revenue for Vietnam and has made it difficult to supervise and control activities related to cryptocurrencies and digital assets. Therefore, creating a clear legal framework is seen as critical to attracting investments and fostering the development of a sustainable crypto ecosystem in Vietnam.
El report Chainalysis reports that approximately 17 million Vietnamese people own digital assets, with a total market value exceeding $100.000 billion.
INVITE AND WINThe potential benefits of clear regulation for cryptoassets
The implementation of a legal framework for cryptocurrencies in Vietnam could bring a number of benefits to the country. First, it would provide clarity and legal certainty to businesses and investors, encouraging investment and innovation in the sector. Second, it would allow the government to oversee and control cryptocurrency-related activities, preventing money laundering and other illicit activities. Third, it could facilitate the collection of taxes on profits made through cryptocurrencies, generating additional revenue for the state.
Furthermore, cryptocurrency regulation is expected to boost the adoption of blockchain technology in Vietnam, which could have a positive impact on various sectors of the economy.
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Although the country ranks high in terms of crypto adoption, the need for a transparent legal framework for digital assets has held back further innovation.
The Vietnamese government’s move to regulate cryptocurrencies is therefore an important step towards creating a more robust and transparent digital economic environment. By establishing a clear and defined legal framework, Vietnam seeks to attract investment, foster innovation and protect investors, while harnessing the potential of cryptocurrencies to boost its development and economic growth.
TRADE WITH STABLECOINSInvesting in cryptoassets is not fully regulated, may not be suitable for retail investors due to high volatility and there is a risk of losing all invested amounts.
