Key takeout
- Vietnam will pilot a digital currency exchange platform under a new regulatory framework.
- The Treasury and state banks are developing legal guidelines for digital assets.
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Vietnam will pilot a digital currency exchange platform under the new regulatory framework, Deputy Finance Minister Nguyen Duc Chi said at a regular government press conference on Wednesday. This news was first reported by vNexpress.
On Monday, Prime Minister Pham Minh Chinh ordered the Ministry of Finance and the Bank of Vietnam to draft legal guidelines for digital assets and cryptocurrency management. The proposed framework is expected to be submitted by the end of this month.
“The Treasury Department is tasked with submitting a report to the government in March to propose a resolution that will enable pilot programs for digital and cryptocurrency exchanges,” the Deputy Minister said it will provide a structured regulated market for investors and individuals to engage in digital asset transactions.
The exchange platform is run by a nationally licensed entity to protect the legal rights of investors. The ministry has also drafted regulations to allow Vietnamese companies to issue virtual assets for capital raising.
Currently, Vietnam does not have a specific definition of cryptocurrency and digital assets. Existing regulations only cover electronic money tied to legal currency through bank prepaid cards and electronic wallets.
The Vietnam Blockchain Association reports that 21% of Vietnam's population owns digital assets, with countries worldwide behind the United Arab Emirates and the United States only. According to data from Chain Orisis, the inflow of digital assets to Vietnam reached $120 billion in 2023.
Without clear regulations, many companies have entered into Singapore or the US before operating in Vietnam, losing their competitive advantage and tax revenue.
Vietnam launches a national blockchain strategy to strengthen regional leadership
Last October, Vietnam announced the country's blockchain strategy, developing the country's blockchain capabilities and planning to establish a legal framework for digital assets.
The Ministry of Information and Communications (MIC) has announced five major areas of action supervised by the government agencies and the Vietnam Blockchain Association. These include improving the legal environment, developing infrastructure and industrial ecosystems, building talent, promoting blockchain development and applications, and promoting research and international cooperation.
This strategy aims to create 20 blockchain brands for platforms, products and services. It also includes plans to establish at least three test centres in large cities to form a national blockchain network focused on security and innovation in blockchain applications.
“Legalizing the definition of digital assets is one of the actions taken to realize the Vietnamese government's commitment to preventing and combating money laundering, terrorist financing, and proliferation of weapons of mass destruction,” the announcement said.
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