Vietnam is taking a significant step toward cryptocurrency regulation as Prime Minister Pham Minh Chinh has directed the Ministry of Finance (MOF) and the State Bank of Vietnam (SBV) to draft a legal framework for digital assets. The directive, issued on Saturday, mandates that the framework be completed within this month.
Thủ tướng Chính phủ đã chỉ đạo Bộ Tài chính và Ngân hàng Nhà nước trong tháng này soạn thảo khung pháp lý cho tiền điện tử.
— NHAT HUY (@josnhathuy) March 4, 2025
👍 Trong năm 2021 và 2022, Việt Nam nằm trong top 3 thế giới về tỷ lệ dân số sở hữu tiền điện tử (tương đương 21% dân số).
TOP3… pic.twitter.com/p3w9dzkEul
Vietnam’s Push for Crypto Regulations
The urgency behind this move highlights Vietnam’s increasing recognition of digital assets as a crucial part of the financial landscape. Last month, the country’s Party Chief, To Lam, emphasized the importance of studying sandbox applications to create a digital assets exchange. This aligns with the government’s broader strategy of fostering economic growth while ensuring financial stability.
According to a 2024 report by Chainalysis, Vietnam ranks fifth globally in crypto adoption and third in the Asia-Pacific region for crypto value received. Additionally, over 17 million Vietnamese citizens currently own cryptocurrencies, with investors earning nearly $1.2 billion in crypto-related profits in 2023. Despite this high level of adoption, the country still lacks a defined regulatory framework, which has led many crypto businesses to relocate to jurisdictions like Singapore and the United States.
What the New Framework Means for Vietnam
The upcoming regulations will help address key challenges in the crypto sector, including the lack of clear definitions for digital assets and the absence of a licensing system. The initiative is expected to:
- Facilitate Business Operations: Crypto businesses will gain access to official licensing and regulatory support, enabling them to operate legally within Vietnam.
- Enhance Investor Protection: Clear guidelines will help mitigate risks for individual and institutional investors.
- Boost Economic Growth: Establishing a regulatory framework will attract investment in blockchain technology and digital assets, contributing to Vietnam’s fintech expansion.
- Enable Taxation and Compliance: The government aims to leverage regulations to integrate crypto into its tax system, reducing revenue losses from unregulated transactions.
The move to establish a legal framework comes as Vietnam looks to catch up with international trends in digital asset regulation. The global crypto market is becoming increasingly regulated, with countries such as the United States, the European Union, and Singapore implementing stringent policies to oversee digital transactions.
Vietnam’s government is expected to integrate crypto regulations into broader financial policies. As part of this initiative, financial hubs will be launched in Ho Chi Minh City and Da Nang in 2025 to foster digital finance innovation. The MOF and SBV will also explore controlled testing mechanisms (sandboxes) to refine regulatory models before full-scale implementation.
Abimbola Adu
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