Vietnam’s Prime Minister Pham Minh Chinh has directed the Ministry of Finance and the State Bank of Vietnam to prepare a legal framework for managing cryptos, with a draft policy expected this month, VnExpress reports.
The finance ministry will lead efforts to establish regulatory measures for digital assets, which remain undefined under Vietnam’s current laws.
Existing regulations only recognise electronic money linked to fiat currencies, such as bank prepaid cards and e-wallets, while cryptos like Bitcoin and Ethereum operate in a legal gray area.
The absence of a formal legal framework has pushed many businesses to register abroad, particularly in Singapore and the United States, before operating in Vietnam.
This has resulted in lost tax revenue and a weakened competitive position for the domestic market.
To address these challenges, Party General Secretary To Lam recently stresses the importance of a controlled regulatory mechanism, suggesting the development of a digital asset trading platform under a sandbox framework.
The prime minister has also instructed the finance and science ministries to finalise policies governing digital assets by the second quarter.
Vietnam has consistently ranked among the world’s top adopters of digital assets.
Between 2021 and 2022, around 21% of the population owned digital assets, placing Vietnam behind only the UAE and the U.S., according to the Vietnam Blockchain Association.
Last year, crypto transactions in the country reached US$120 billion, based on data from market analysis firm Chainalysis.
Featured image credit: Edited from Freepik
