Vietnam to set up a legal framework for digital assets

Vietnam is ready to introduce a legal framework for digital assets at the end of March, as part of a broader effort to promote economic growth.

For each reports in local media, the move comes after Premier Phạm MINH Chính Guideline no. 05 had signed, with a national growth metal of 8% or more by 2025.

The Ministry of Finance (MOF) and the State Bank of Vietnam (SBV) have been given the task of completing the and submitting proposals for regulating crypto by the end of this month.

“The party has arranged, agreed the government, agreed the national meeting, the people have supported, and expected the homeland,” said Chính, who announced the proposal.

The proposed legal framework is expected to provide more clarity for crypto companies, which means they have access to financing and operating within a safe regulatory environment.

Vietnam and Crypto

Crypto transactions in Vietnam is currently in a legal gray area, because the country has not yet to officially recognize the activa class.

Nevertheless, crypto -trade continues to occur frequently, where many companies choose to register abroad in places such as Singapore and the US to prevent local regulations.

This practice has led to lost tax revenues and competing disadvantages for domestic companies. In the light of this, government officials draw attention to the need for extensive regulations.

Crypto is a growing presence in Vietnam, where the country is in fifth place worldwide in Blockchain Analysis Firm Chainalysis’ 2024 Global Crypto Adoption Index.

During the period from 2023–24, Blockchain investments that flowed to Vietnam then amounted to $ 105 billion.

“Creating this legal framework will help companies to access bank capital and offer a safer, more transparent environment for crypto transactions,” said a representative of the Ministry of Finance.

The secretary of the party of Vietnam, for LAM, recently endorsed the need to set up a legal framework for virtual assets at the Committee of the Central Committee for Policy and Strategies.

“Policy must be present to ensure that Vietnam is not lagging behind, missing opportunities or creating a gap with new financial models and modern trade methods,” said Lam.

Crypto in Asia

While Vietnam positions itself to regulate digital assets, neighboring financial hubs such as Singapore and Hong Kong have been proactive in establishing extensive crypto regulations.

The regulatory framework of Singapore, founded under the Payment Services ACT (PSA) of 2019, regulates digital payment (DPT) providers, which means they have to adhere to strict compliance and licensing procedures. ​

In 2024, Singapore raised his issue of licenses for digital assets, whereby the monetary authority of Singapore (MAS) 13 major Payment Institution (MPI) licenses to Crypto exchanges.

Hong Kong has also taken steps to strengthen his position as an important player in the global crypto market and to launch a detailed route map to strengthen his digital assets ecosystem.

Last month the City’s Securities and Futures Commission (SFC) introduced the “Aspire” roadmap for the growth of digital assets, the strategic initiatives of Oulining aimed at five important pillars: access, guarantees, products, infrastructure and relations.

From the beginning of 2024, the SFC has already licenseed 10 virtual assets -trading platforms and is actively working on expanding its license regime, including OTC traders and preservators.