What has happened between Vietnam and cryptocurrencies is a complex relationship, marked by active growth in the use and mining of crypto assets, while the government maintains a cautious and largely restrictive stance. Here is a summary.
General context
Growing popularity: Vietnam is one of the countries with the highest adoption of cryptocurrencies in the world, especially in terms of person-to-person (P2P) trading.
High youth participation: Many young people and freelancers use cryptocurrencies for payments, savings, or investments, given the limitations of the traditional banking system.
Vietnamese government's stance
Prohibition as a means of payment: Although owning cryptocurrencies is not illegal, using them as a payment method has been since 2018. Only the Vietnamese dong is legally accepted for commercial transactions.
No clear regulation: The country does not have comprehensive legislation on cryptocurrencies, although it has been evaluating frameworks to control and regulate them.
Concerns and measures
Scams and frauds: The lack of regulation has led to several cases of pyramid schemes and crypto frauds, which has raised concerns among authorities.
Cryptocurrency mining: Although not explicitly prohibited, it has been a subject of discussion, especially during energy crises. In some cases, the importation of mining equipment has been restricted.
Current trends
Pilot project: In 2021, it was proposed to explore the creation of a central bank digital currency (CBDC) to modernize the financial system.
Increased surveillance: The government is looking to monitor cryptocurrency transactions and require platforms to report suspicious movements.
Conclusion:
Vietnam lives a paradox: one of the largest users of crypto in the world, but without solid regulation and with significant restrictions. The country is slowly moving towards a more controlled model, without completely stifling its population's enthusiasm for digital assets.
Here’s a question for you, is state regulation of cryptocurrencies necessary or are you more liberal and prefer the market to self-regulate? I’ll read your comments 👀