Vietnam Takes Significant Steps Towards Regulating Digital Currencies

Vietnam has passed a new law recognizing digital currencies and establishing a regulatory framework for them, aimed at enhancing transparency and protecting investors. The law includes:

- *Definition of Digital Currencies*: The law defines digital currencies as digital assets that use encryption or similar technologies to verify transactions and prove ownership.

- *Binary Classification*: The law divides digital assets into two categories:

- *Virtual Assets*: Includes non-financial tokens, loyalty points, or in-app currencies.

- *Cryptocurrencies*: Includes assets based on encryption technologies and distributed ledger technologies such as Bitcoin and Ethereum.

- *Compliance with International Standards*: The law aims to comply with international standards for combating money laundering and terrorist financing, which could help Vietnam exit the Financial Action Task Force's gray list.

Expected Impact

- *Enhancing Financial Stability*: By providing a clear regulatory framework for digital currencies.

- *Attracting Investments*: By providing a safer and more transparent investment environment.

- *Promoting Technology*: The law also includes measures to support the growth of technology in areas such as artificial intelligence, electronic chips, and digital infrastructure.