Vietnam to Propose Legal Framework for Digital Currencies by March 2025
The Prime Minister of Vietnam, Pham Minh Chinh, has requested a proposal for a legal framework on digital currencies to be submitted by March. The Ministry of Finance and the State Bank of Vietnam will develop this proposal as part of efforts to regulate the growing digital asset market, where Vietnam ranks 7th globally in cryptocurrency ownership.
- Cryptocurrency is not currently recognized as legal tender in Vietnam.
- Businesses operating locally often register abroad to avoid regulations, impacting local competitiveness and tax revenue.
- The legal framework aims to improve access to capital for businesses and enhance transparency in transactions.
- It will also assist in taxing crypto transactions, boosting the economy.
- The government lacks a clear definition of virtual currencies; previous regulations classified crypto as intangible assets.
- By 2025, digital assets will be classified based on technology and purpose, providing clearer regulatory guidelines.
- The government is considering testing mechanisms (sandboxes) for establishing a digital asset exchange to support sector growth.
- Financial hubs are planned for Ho Chi Minh City and Da Nang by 2025.
- Draft policies related to digital assets and sandboxes are due by Q2 2025.
These initiatives position Vietnam as a potential leader in the global digital currency space.