#VietnamCryptoPolicy Vietnam’s cryptocurrency policy remains in a **gray area**, with no formal legal framework yet, but the government has shown increasing interest in regulating digital assets. Here’s the latest update on Vietnam’s crypto stance:

### **Current Legal Status (2024)**

- **Not Legal Tender**: Cryptocurrencies like Bitcoin are **not recognized as legal tender** in Vietnam.

- **Ban on Crypto Payments**: Since 2018, the State Bank of Vietnam (SBV) has **prohibited** the use of crypto for payments.

- **No Formal Ban on Trading/Investing**: Individuals can trade crypto on exchanges, but businesses cannot facilitate crypto payments.

### **Government & Regulatory Moves**

1. **Anti-Money Laundering (AML) Rules (2024)**

- Vietnam added crypto to its **AML laws**, requiring exchanges to comply with KYC/AML regulations.

- Signals a step toward **future regulation** rather than an outright ban.

2. **Taxation**

- **No clear crypto tax policy**, but profits may be subject to capital gains or income tax (varies by case).

- The Ministry of Finance is studying taxation models.

3. **Potential Licensing Framework**

- The SBV is drafting a **pilot program** to regulate crypto (expected 2025).

- Could follow models like Hong Kong or Singapore.

4. **Central Bank Digital Currency (CBDC)**

- Vietnam is testing a **digital Vietnamese đồng (e-VND)** but remains cautious on private cryptos.

### **Market Reality**

- **High Crypto Adoption**: Vietnam ranks **top 3 globally** in crypto adoption (Chainalysis 2023).

- **P2P & OTC Trading Thrives**: Due to unclear banking support, many use peer-to-peer (P2P) platforms.

- **Growing Blockchain Startups**: Vietnam is a hub for Web3 development (e.g., Axie Infinity, Kyber Network).

### **Risks & Warnings**

- **Scams & Fraud**: Unregulated market leads to high risks of Ponzi schemes (e.g., ICO scams in past).

- **Banking Restrictions**: Some banks block crypto-related transactions.