Key dealers
- Vietnam will pilot a digital currency exchange platform under a new regulatory framework.
- The Ministry of Financing and State Bank develops legal guidelines for digital assets.
Vietnam will piloting a digital currency exchange platform under a new regulations, says Deputy Finance Minister Nguyen Duc Chi at the government’s regular press conference on Wednesday. The news was first reported of vnexpress.
On Monday, Prime Minister Pham Minh Chinh the Ministry of Finance and State Bank of Vietnam ordered legal guidelines for digital access and crypto management. The proposed framework depends on submission at the end of this month.
“The Ministry of Finance has the task of submitting a report to the Government in March and proposing a resolution to enable a pilot program for digital and virtual currency exchanges,” said Deputy Minister, noting that it will provide a structured and regulated market for investors and individuals to conduct digital asset trading.
The Exchange platforms will be driven by state licensed units to protect investors’ legal rights, according to CHI. The Ministry also prepares regulations to allow Vietnamese companies to issue virtual assets for capital increase.
Vietnam currently lacks specific definitions for virtual currencies and digital assets, with existing regulations that only cover electronic money bound to legal tenders through bank-paid cards and e-wallets.
Vietnam Blockchain Association reports that 21% of Vietnam’s population owns digital assets and places the country among the top three globally behind only the United Arab Emirates and the United States. Inflows in digital access to Vietnam reached $ 120 billion in 2023, according to data from chain analysis.
The absence of clear regulations has caused many companies to register in Singapore or the United States before they operate in Vietnam, which resulted in lost competitive advantage and tax revenue.
Vietnam launches national blockchain strategy to strengthen regional leadership
In October last year, Vietnam revealed its national blockchain strategy, with plans to develop the country’s blockchain capacity and establish legal framework for digital assets.
The Ministry of Information and Communication (MIC) announced five important measures that will be monitored by authorities and Vietnam Blockchain Association. These include improving the legal environment, developing infrastructure and an industrial ecosystem, building human resources, promoting blockchain development and applications and promoting 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 test centers in larger 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 measures to realize the Vietnamese government’s commitment to prevent and combat money laundering, terrorist financing and financing of the dissemination of weapons of mass destruction,” stated the announcement.
