Vietnam Edges Closer to Regulatory Framework for Crypto Assets

Vietnam is another step closer to a comprehensive regulatory framework on how cryptocurrencies and virtual assets should be treated in the country.

Vietnam to Prepare Crypto Regulatory Framework

According to a Monday report, Vietnamese Deputy Prime Minister Le Minh Khai has instructed the different government bodies in the country on the creation of a framework that would regulate digital assets and their activities.

The agencies selected to partake in the project include the nation’s central bank and the Ministries of Finance, Justice, Information & Communications. However, the Ministry of Finance will spearhead the project and will work with related bodies to identify legal documents that need adjustments or promulgation.

The Ministry of Finance will also schedule a specific time for the implementation of the framework. However, the proposed date was not disclosed in the report.

The upcoming regulation that will oversee the management of cryptocurrencies and digital assets, in general, will be in accordance with Decision 1255. It was issued by the country’s Prime Minister in August 2017, approving a plan on how virtual assets should be managed in the country.

Vietnam Sets Up Crypto Research Unit

Since Decision1255 was issued, Vietnam has kept a close eye on the cryptocurrency industry. In April 2018, another directive was created to enhance the management of Bitcoin and crypto transactions and to monitor and control potential risks and impacts of the asset class.

In May 2020, the Vietnamese Ministry of Finance set up a special research unit to study and propose ways to manage and regulate virtual assets within the country.

The research unit was made up of finance specialists from different agencies. These included the State Securities Commission, General Department of Taxation, State Bank of Vietnam’s Department of Banking and Financial Institutions and Legal Department, Vietnam Customs, and National Institute for Vietnam Finance.

Growing Crypto Adoption in Vietnam

The move to introduce a comprehensive legal framework to regulate crypto activities in Vietnam stems from the increasing interest in cryptocurrencies and mining operations from investors across the country.

According to a Chainalysis report last year, Vietnam, India, and Pakistan led the global crypto adoption race in 2020 as more such transactions were recorded from the countries.

In September, CryptoPotato reported that Vietnam recorded high demand for digital asset mining rigs as more people joined the mining sector in the country.