🇻🇳Using Crypto as Collateral: "If banks accept it, they will do so very conservatively"

At the recent seminar "Collateralizing Asset Rights to Secure Loan Transactions," experts actively discussed the acceptance of digital asset collateral.

According to lawyer Nguyen Tien Lap, the valuation of this asset is not simple at all, even for banks as they have to comply with strict regulations.

Banks in Vietnam almost dominate the capital market, facing little competition, so they tend to "impose" valuations. Not to mention, if the valuation is incorrect, bank officials may face administrative or criminal liability, making them even more cautious.

Therefore, according to Mr. Lap, if there are no guidelines from the State Bank of Vietnam on how to value, banks will not accept it, or will do so very conservatively (accepting at a very low valuation).

Most experts agree that banks are currently very hesitant with digital assets. Despite the great potential, implementation will be slow and difficult to materialize due to many legal risks.