Vietnam is advancing its regulatory approach to digital assets, aiming to establish a comprehensive legal framework by May 2025. This initiative, led by the Ministry of Finance and the State Bank of Vietnam, is part of the national action plan to combat money laundering, terrorist financing, and the proliferation of mass destruction weapons. The framework will address the growing influence of cryptocurrencies like Bitcoin and Ethereum, which, despite not being recognized as legal tender, are widely used for investment and transactions. The government's strategy includes implementing Know-Your-Customer (KYC) and Know-Your-Transaction (KYT) protocols, and possibly introducing a regulatory sandbox to test digital asset platforms. This move is expected to enhance transparency, protect investors, and bolster tax revenues, positioning Vietnam as a leader in Southeast Asia's digital economy.
