A representative from Vietnam’s Ministry of Justice emphasized the need for a legal framework to oversee the development of cryptocurrency in the country and mitigate associated risks, despite cryptocurrency not being banned outright.
Cao Dang Vinh, Deputy Director of the Department of Economic and Civil Legislation, said on April 12 that there are still different understandings about virtual assets, digital currencies and cryptocurrencies. Countries also have different management approaches.
Cao Dang Vinh noted the absence of regulations governing cryptocurrency development in Vietnam, clarifying that cryptocurrency is not recognized as a legal asset. He emphasized the importance of establishing a legal framework to address risks and prevent unlawful appropriation.
The Ministry of Justice stands ready to provide detailed opinions once specific proposals are put forth by the Ministry of Finance.
The Government has directed the State Bank of Vietnam to explore pilot initiatives for cryptocurrency implementation to combat money laundering. Two years prior, the National Assembly urged the Government to expedite the development of a legal framework for this emerging asset class.
In February, the Government instructed the Ministry of Finance to expedite the development of regulations governing the cryptocurrency market, with a target completion date of May 2025.
Cryptocurrency transactions in Vietnam predominantly occur on international platforms or through peer-to-peer transactions. According to statistics from the Vietnam Blockchain Association, cryptocurrency inflows to Vietnam totaled nearly $91 billion by September 2023, with approximately $956 million attributed to illegal transactions.
