- Vietnam’s Prime Minister has ordered a legal framework for crypto assets like Bitcoin and Ethereum, aiming to regulate digital currencies in the country.
- Authorities stress that cryptocurrencies, including Pi Network, lack legal recognition, making transactions unprotected and crypto payments unlawful in Vietnam.
Vietnam intends to enhance its regulation of digital assets. Prime Minister Pham Minh Chinh has directed the Ministry of Finance and the State Bank of Vietnam to draft a legal framework for cryptocurrency in the near future. This step is supposed to give public users and industry actors that have been engaged in the crypto space without explicit rules legal certainty.
🚨 Breaking: Vietnam’s PM has directed the Central Bank and Finance Ministry to draft a legal framework for digital assets, hinting at a possible change in the nation’s crypto rules. pic.twitter.com/BzkuRuEd8o
— Crypto Jessica (@CryptoJessXBT) March 3, 2025
Balancing Innovation and Legal Uncertainty in Vietnam
Vietnam has obviously shown a lot of interest in implementing blockchain technology on the one hand. As we have reported, part of the National Blockchain Strategy is the nation’s aim at the development of 20 blockchain brands and test centers by 2030.
Encouragement of local blockchain platforms to improve national competitiveness also falls on the Vietnam Blockchain Association. Still, there remain questions about the risks involved in crypto trading and investment.
For instance, the Hanoi police have sent a strong warning on the risks associated with Pi Network investment. They underlined that Pi, among other cryptocurrencies, is not acknowledged as a legal asset in Vietnam. Transactions using cryptocurrencies do not get legal protection.
Furthermore, using cryptocurrency for payment is still unlawful and might lead to fines or maybe criminal prosecution for offenders.
Weighing Opportunities Against Regulatory Constraints
This policy embodies Vietnam’s balance between promoting innovation and upholding order and financial security. The decision to draft a crypto legal framework in the near future could be a starting point for Vietnam in determining the future of digital assets in its country.
Indeed, clear rules are very much needed. Many other nations are starting to create rules now to fit the fast-expanding crypto environment. Without strong rules, Vietnam runs the danger of losing momentum among ever more intense worldwide competition.
On the other side, too rigorous rules might also stifle creativity and inspire industry players to migrate to other nations more suitable for cryptocurrencies.
Where is this Policy Heading?
The issue currently is future crypto regulation in Vietnam: how will it be done? Will the government pick a more adaptable strategy to draw blockchain startups and investors? Alternatively, will it adopt the policies of nations tougher in terms of industry control?
It is abundantly evident that this choice would significantly affect the Vietnamese blockchain and crypto ecosystem. Vietnam could become one of the hubs of blockchain innovation in Southeast Asia if the rules followed are sufficiently in harmony.
However, if the regulations applied are too restrictive, it is possible that industry players will look for alternatives in other countries.