Pham Minh Chinh, Vietnam’s Prime Minister, is pushing for a draft of the crypto legal framework by this month’s end. He issued a directive, instructing the Ministry of Finance and the State Bank of Vietnam to develop the said regulations.
Per the directive issued Saturday, the Finance Ministry will spearhead the project, formulating a draft policy on crypto management. The ministry will coordinate with agencies and localities to urgently complete the development of a legal corridor for digital assets.
Further, the State Bank of Vietnam will manage interest rates, exchange rates, and credit growth, the PM noted.
Vietnam’s Urgent Call for Digital Asset Regulations
The directive arrives a week after PM Chinh tasked the Ministry of Finance and the Ministry of Science and Technology to develop crypto policies no later than the second quarter.
Last month, Vietnam’s Party chief To Lam emphasized the need to study sandbox applications to establish a digital assets exchange.
The Prime Minister’s urgent call for a crypto legal framework underscores the growing recognition of cryptos on the global landscape.
Crypto Boom – Opportunities and Challenges
According to a 2024 blockchain report by data platform Chainalysis, Vietnam ranked fifth in the world in crypto adoption. Additionally, it ranked third by crypto value received in the Asia Pacific.
The report also shows that there are currently 17 million people in Vietnam who own crypto assets. Further, Vietnamese investors earned nearly 1.2 billion USD in profits from Bitcoin and other cryptocurrencies in 2023.
However, the South-East Asian nation lacks in digital asset definition as currently, regulations only address the concept of electronic money pegged to fiat currency. This includes bank prepaid cards and electronic wallets. The lack of a specific framework has also led several crypto businesses to migrate to Singapore or the United States. This is because there is no crypto license in Vietnam at the moment, according to Company Incorporation.
PM’s directive marks a pivotal role for Vietnam’s engagement with the digital asset revolution. Though the specifics are yet to unfold, the decision positions the nation in catching upwith global crypto regulatory trends.
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