Vietnam’s Ministry of Finance is poised to unveil a comprehensive legal framework for digital assets and cryptocurrencies this month.
Deputy Minister Nguyen Duc Chi revealed at a recent government press conference that the framework will include a pilot program for a state-licensed digital currency exchange.
This initiative aligns with Prime Minister Pham Minh Chinh’s call for regulators to create clear guidelines for managing digital assets.
The collaborative effort between the Ministry of Finance and the State Bank of Vietnam aims to strike a balance between fostering innovation and ensuring investor protection.
Chi emphasized that the proposed exchange would facilitate the trading of digital assets for individuals and businesses under government oversight, thus providing legal protections and reducing associated risks. Furthermore, the government is considering regulations to allow Vietnamese companies to issue virtual assets as a means of raising capital.
Currently, Vietnam lacks formal legal definitions for digital assets and cryptocurrencies, causing many blockchain businesses to operate overseas.
This regulatory gap has led to significant tax revenue loss and limited oversight of the domestic market.
Recent data indicates that Vietnam experienced $120 billion in digital asset inflows in 2023, positioning it among the top three countries for digital asset ownership worldwide, with 21% of its population engaged in cryptocurrency. The forthcoming regulatory framework is designed to capitalize on this burgeoning sector while addressing potential risks.
