Building cryptocurrency regulations in Vietnam

Building cryptocurrency regulations in Vietnam

Building cryptocurrency regulations is urgent, with Vietnam integrating deeply into the global economy, especially in digital technologies and digital assets.

Workshop on building cryptocurrency legal framework

On March 8, a workshop on building a cryptocurrency legal framework took place in Ho Chi Minh City.

Phan Duc Trung, chairman of the Vietnam Blockchain Association (VBA) said that several countries and territories such as the United States, Thailand have taken the lead in recognising and building a legal framework for digital assets, and could work as case studies for Vietnam. These countries all focus on building a clear and flexible legal mechanism to boost the development of the digital asset market.

For example, the US issued an Executive Order to build a legal framework for digital finance, and become a global digital financial hub, which Vietnam can refer to build policies on digital assets in a flexible, open and transparent manner.

Thailand has taken strong steps in deploying cryptocurrency testing zones and building a digital asset trading system based on DLT technology, which is a remarkable strategy to boost the application of digital assets in the real economy, especially in areas such as tourism and securities.

“In Vietnam, about 17 million people owned cryptocurrency in 2024, ranking seventh globally. And in 2024, Vietnam received more than $105 billion in cryptocurrency, down from $120 billion in 2023,” he said.

Trung said that drastic policy moves from the general secretary and the prime minister confirmed the determination of the Party and government to push Vietnam into deep integration with the global economy, especially in digital technology and digital assets.

Resolutions of the National Assembly have allowed Ho Chi Minh City and Danang to pilot a controlled testing mechanism; and there has also been a resolution on a regional and international financial centre in Vietnam. In addition, the current draft Law on Digital Technology Industry is laying the foundation for the development of the digital economy.

In Southeast Asia, Bitget CEO Gracy Chen said that Singapore was one of the leading countries in managing cryptocurrency. The Monetary Authority of Singapore has issued clear regulations on licensing and regulating digital currency exchanges. Singapore focuses on balancing encouraging technological innovation and protecting investors.

She said Vietnam's cryptocurrency market was expected to achieve a compound annual growth rate of 10 per cent from 2024 to 2032, according to Chainalysis. Revenue from Vietnam's cryptocurrency segment will reach $1 billion by the end of 2024, equivalent to an average of about $65 per person.

"Vietnam is a promising land for digital assets, but the market still lacks platforms that truly understand and meet the specific needs of users,” Chen added.

Mai Hoang Phuoc from the University of Economics and Law, under Vietnam National University in Ho Chi Minh City pointed out some consequences of not recognising digital currency as legal property.

“There is no mechanism for investor protection. Investors are trading on foreign exchanges that are not subject to Vietnamese law, some of which do not even have a specific head office address. Thus, in the event of fraud or loss of assets due to high-tech crimes, investors are at risk of losing all their assets and Vietnamese authorities cannot do anything,” he said. “Affirming cryptocurrency as property and building a legal framework for digital currency is necessary in Vietnam to solve these problems and create a solid legal foundation for the development of the digital currency market in Vietnam.”

VIR