Financial security concerns have prompted the Ministry of Finance (MoF) to express caution regarding the proposed pilot program for digital currency and asset transactions in Vietnam’s emerging financial hubs.
According to the Hanoi Times, this response challenges the Ministry of Planning and Investment’s (MPI) initiative to establish a regulatory sandbox for digital asset and crypto exchanges, initially targeting July 2026.
The MoF’s primary concern stems from Vietnam’s lack of a legal framework for digital assets and cryptocurrencies.
The ministry argues that without regulations covering issuance, ownership, trading, licensing, and security, financial stability is at risk.
Consequently, the MoF has requested further analysis from the State Bank of Vietnam (SBV), particularly regarding the potential use of these assets in payment transactions.
Furthermore, the MoF advocates for government control over the pilot program, advising against the pre-set July 2026 launch date.
Despite global recognition of cryptocurrencies like Bitcoin and Ethereum as virtual assets, Vietnam lacks a legal definition.
Current regulations only cover electronic money linked to fiat currency, like e-wallets and prepaid cards.
This regulatory gap drives businesses to register abroad, hindering competitiveness and tax revenue. Experts also cite increased transaction risks due to a lack of transparency.
Data from the Vietnam Blockchain Association shows Vietnam ranked among the top three globally for digital asset ownership (21% of the population) between 2021 and 2022.
Chainalysis reports digital asset inflows to Vietnam reached US$120 billion in 2023.
The MPI’s sandbox aims to foster fintech development and a competitive financial center.
While sandbox models are common in global financial hubs, the MPI acknowledges the risk of increased fraud, requiring strong regulatory oversight.
Featured image credit: Edited from Freepik
