VCCI proposes definitions on developing regional, international financial centres
VCCI proposes definitions on developing regional, international financial centres
The National Assembly’s draft resolution on developing Việt Nam’s regional and international financial centres should clarify which enterprises are eligible to register as members of the centre, according to the Vietnam Chamber of Commerce and Industry (VCCI).
Under a document commenting on the NA’s draft, VCCI said the draft stipulates that the subjects eligible to register as members of the centre are credit institutions, financial companies, stock, gold and foreign currency exchanges, financial investment funds, investment funds and insurance companies. They are all entities which provide financial services.
However, the draft does not mention large customers who use financial service such as corporations, parent and holding companies. This leads to the question of whether non-financial enterprises are allowed to register as members of the financial center or not.
According to VCCI, after experiencing some other financial centres in the world that also have membership registration regulations, it sees that the subjects allowed to participate as members of the centres are clearly divided into two groups: financial enterprises and non-financial enterprises.
Under the document, VCCI also expressed its opinion on the sandbox. Specifically, according to VCCI, a draft on regulating fintech is being designed in the direction of assigning the Government to regulate in detail measures to manage crypto assets, cryptocurrencies and utility tokens. Such regulations will cause the risk that the Government will have difficulty in issuing guiding documents because it cannot standardise issues that are too new and are still changing very quickly.
Therefore, VCCI recommends the draft should allow businesses to propose solutions to meet the State's management goals.
Specifically, the State needs to set goals such as protecting property rights, preventing fraud, ensuring cyber security, energy and environmental security, along with anti-money laundering. When applying for a licence, fintech businesses will present their business models and explain solutions to achieve the above goals.
On that basis, State agencies will review, evaluate, appraise and grant licences for such fintech activities. Businesses must properly implement the committed solutions and must report and have regular inspection and supervision by State agencies. After a period of time, when the business's solutions are proven to be effective, the State will develop them into management regulations.
