Hanoi (VNS/VNA) – According to a representative from the Ministry of Justice, the use of Cryptocurrency is not prohibited in Vietnam; however, there is a crucial need to establish a legal framework to oversee its proper development and mitigate associated risks.
Cao Dang Vinh, the Deputy Director of the Department of Economic and Civil Legislation, highlighted on April 12 the existing discrepancies in interpretations regarding virtual assets, digital currencies, and cryptocurrencies, with varying regulatory approaches across different countries.
The inherent risks associated with cryptocurrencies create opportunities for exploitation, particularly in terms of asset misappropriation and money laundering.
Vietnam currently lacks specific regulations to govern the advancement of cryptocurrencies, with no legal recognition of cryptocurrency as an asset.
Emphasizing the importance of a legal framework to address potential risks and illicit activities related to cryptocurrency, Vinh underscored the necessity for Vietnam to take proactive measures in this regard.
The Ministry of Justice stands ready to provide detailed insights once the Ministry of Finance presents specific proposals for consideration.
In response to governmental directives, the State Bank of Vietnam has been tasked with exploring the feasibility of piloting cryptocurrency usage to combat money laundering.
Notably, the National Assembly had previously urged the Government to expedite the formulation of a legal framework for this emerging asset class.
In a recent development, the Government instructed the Ministry of Finance to lead efforts in finalizing the regulatory framework for the cryptocurrency market by May 2025.
Cryptocurrency transactions within Vietnam predominantly occur through international platforms or peer-to-peer transactions.
Data from the Vietnam Blockchain Association revealed that as of September 2023, Vietnam had received cryptocurrency inflows amounting to nearly 91 billion USD, with approximately 956 million USD attributed to illicit transactions.
VNA