🚨To Boost Economy by 8%, Vietnam PM Orders Drafting of Crypto Regulations
Prime Minister (PM) Pham Minh Chinh of Vietnam has ordered the Ministry of Finance and the State Bank of Vietnam to draft a legal framework regarding digital assets such as cryptocurrency this month.
This move aims to regulate digital assets like Bitcoin (BTC) and Ethereum (ETH), which currently lack a legal definition in the country. Currently, regulations only cover electronic money linked to fiat currencies, such as prepaid bank cards and e-wallets.
The absence of a legal framework has led many crypto companies to choose to register in other countries like Singapore or the United States, despite operating in Vietnam. This has resulted in a loss of potential tax revenue and domestic economic competitiveness.
PM Chinh also emphasized the importance of a controlled testing mechanism or sandbox to build a secure and scalable digital asset trading platform.
Vietnam has become one of the countries with the highest crypto adoption rates, with 21% of its population holding digital assets in 2021-2022. The Vietnam Blockchain Association also reported that the flow of digital assets reached US$120 billion in 2023. This figure indicates the significant potential of the crypto sector in supporting the country’s digital economy.
With clear regulations, the government hopes to attract more institutional investment and drive the national economic growth target to 8% per year.
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