A person holds a coin with the Bitcoin symbol. Photo by VnExpress/Bao Lam
Prime Minister Pham Minh Chinh has ordered the Ministry of Finance and the State Bank of Vietnam to draft a legal framework on cryptocurrencies within this month.
The finance ministry needs to spearhead the project to draft proposed policies on managing digital assets and cryptos, he said in a directive Saturday.
Vietnam has yet to provide a specific definition for digital currencies and assets such as Bitcoin and Ethereum. Current regulations only address the concept of electronic money pegged to fiat currency, existing in forms such as bank prepaid cards and electronic wallets.
The lack of a legal framework for digital assets has led many businesses to register in Singapore or the United States and then operate in Vietnam, resulting in a loss of competitive advantage and tax revenue.
Party General Secretary To Lam has recently highlighted the need to study and apply a controlled testing mechanism (sandbox) to establish a trading platform for digital assets.
Last week, PM Chinh also tasked the Ministry of Finance and the Ministry of Science and Technology with developing policies and regulations on digital assets no later than the second quarter.
In 2021 and 2022, Vietnam ranked among the top three countries globally in terms of the percentage of the population owning digital assets (equivalent to 21% of Vietnam’s population), trailing only the United Arab Emirates and the U.S, according to data from the Vietnam Blockchain Association.
The flow of digital assets into Vietnam in 2023 reached US$120 billion, as reported by market analysis organization Chainalysis.
The PM, in his directive, also ordered the State Bank of Vietnam to study the issuance of housing credit packages for people under 35.
He also wants the central bank to monitor commercial banks’ interest policies to ensure people and businesses have access to loans with reasonable interest rates which will boost economic development.
