Key Takeaways
- Vietnam will pilot a digital currency exchange platform under a new regulatory framework.
- The Ministry of Finance and State Bank are developing legal guidelines for digital assets.
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Vietnam will pilot a digital currency exchange platform under a new regulatory framework, said Deputy Minister of Finance Nguyen Duc Chi at the government’s regular press conference on Wednesday. The news was first reported by VnExpress.
On Monday, Prime Minister Pham Minh Chinh ordered the Ministry of Finance and the State Bank of Vietnam to draft legal guidelines for digital asset and crypto management. The proposed framework is due for submission by the end of this month.
“The Ministry of Finance is tasked with submitting a report to the government in March, proposing a resolution to enable a pilot program for digital and virtual currency exchanges,” said the Deputy Minister, noting that it will provide a structured and regulated marketplace for investors and individuals to engage in digital asset trading.
The exchange platforms will be operated by state-licensed entities to protect investors’ legal rights, according to Chi. The ministry is also drafting regulations to allow Vietnamese companies to issue virtual assets for capital raising.
Vietnam currently lacks specific definitions for virtual currencies and digital assets, with existing regulations only covering electronic money tied to legal tender through bank prepaid cards and e-wallets.
The Vietnam Blockchain Association reports that 21% of Vietnam’s population owns digital assets, placing the country among the top three globally behind only the UAE and the US. Digital asset inflows to Vietnam reached $120 billion in 2023, according to data from Chainalysis.
The absence of clear regulations has prompted many businesses to register in Singapore or the US before operating in Vietnam, resulting in lost competitive advantage and tax revenue.
Vietnam launches National Blockchain Strategy to bolster regional leadership
Last October, Vietnam unveiled its National Blockchain Strategy, with plans to develop the country’s blockchain capabilities and establish legal frameworks for digital assets.
The Ministry of Information and Communications (MIC) announced five key action areas that will be overseen by government agencies and the Vietnam Blockchain Association. These include improving the legal environment, developing infrastructure and an industrial ecosystem, building human resources, promoting blockchain development and applications, and advancing research and international cooperation.
The strategy aims to create 20 blockchain brands for platforms, products, and services. It also includes plans to establish at least three testing centers in major cities to form a national blockchain network, focusing on security and innovation in blockchain applications.
“The legalization of the definition of Digital Assets is one of the actions to realize the Vietnamese government’s commitment to preventing and combating money laundering, terrorist financing, and financing of the proliferation of weapons of mass destruction,” the announcement stated.
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