Vietnam Ministry Representative Clarifies Stance on Crypto and Calls for Regulation Framework
Vietnam Ministry Clarifies Stance on Crypto, Emphasizes Need for Regulation
In a recent statement, a representative from the Vietnam Ministry clarified that cryptocurrencies are not prohibited within the country. However, there is a pressing need to establish a legal framework to regulate them and mitigate potential risks.
Cao Dang Vinh, deputy director of the economic and civil legislation department, highlighted the varying interpretations of virtual assets, digital currencies, and cryptocurrencies, noting the disparity in management among different countries. He expressed concerns about the inherent risks associated with crypto, such as misappropriation and money laundering, emphasizing that Vietnam does not recognize crypto as a legal asset.
The Ministry of Justice is set to provide more feedback on regulations once the finance ministry presents concrete proposals. This development comes in the wake of reports that the finance ministry proposed a potential prohibition or regulation of virtual assets by May 2025 as part of an initiative to strengthen the country’s anti-money laundering efforts.
Vietnam’s efforts to regulate crypto come as the country aims to be removed from the “gray list” maintained by the Financial Action Task Force (FATF), an intergovernmental anti-money laundering organization. Inclusion on the FATF gray list can impact foreign investment decisions due to heightened money laundering risks.
Despite the regulatory uncertainties, Vietnam ranked third in Chainalysis’s 2023 global crypto adoption index, indicating a significant interest in cryptocurrencies within the country. Foreign platforms currently dominate Vietnam’s crypto transactions, with a substantial portion of transactions conducted through intermediary channels.
The Vietnam Blockchain Association reported that the total value of crypto received in Vietnam approached $91 billion by September 2023, with illegal transactions accounting for approximately $956 million of this total. With a flourishing pool of tech talent and high crypto adoption rates, Vietnam is becoming an attractive destination for international projects looking to tap into the regional market.
Crypto exchanges in Vietnam are projected to generate revenue exceeding $149 million by the end of 2024, with further growth forecasted at a rate of 10.03% annually over the next four years. As Vietnam explores regulatory options for cryptocurrencies, the global crypto community will be closely watching how these developments unfold in the coming months.
