Vietnam Prime Minister Pham Minh Chinh has proposed creating a legal framework for cryptocurrency. The move comes as Vietnam tries to pursue measures that stimulate and stabilise the economy. The Ministry of Finance (MOF) and the State Bank of Vietnam (SBV) have been asked to complete the task.
Chinh has requested a draft of the legal framework by the end of the month
Cryptocurrency in Vietnam is currently not seen as legal tender. Many people who use crypto register their tokens overseas. As a result, Vietnam loses much tax revenue by not capitalising on the popularity of digital assets. Further, crypto companies in Vietnam are disadvantaged on the global stage by having government backing. The prime minister claims that a regulatory framework is popular amongst Vietnamese citizens.
The prime minister recently signed Directive No. 5, which aims to achieve 8% national growth by 2025. The crypto proposal forms part of this larger strategy to establish a legal framework for digital currencies.
“The Party has directed”, wrote Tuoi Tre, government head, “the Government has agreed, the National Assembly has agreed, the People have supported, and the Fatherland has expected. So just discuss to action, not to retreat”.
The prime minister’s directive was issued on Saturday. The Finance Ministry will be in charge of executing the project. The project will be fast-paced due to the urgency of creating a legal framework for a growing industry and supporting more business innovation in Vietnam.
Nguyen Duy Hung, chairman of Saigon Securities Inc., mentioned that Vietnam ranks fourth in cryptocurrency transaction volume, making it one of the leaders in digital asset adoption and innovation. He further started that a legal framework would protect consumers and entrepreneurs so that they could enjoy the benefits of technological innovation. The framework, he further reasoned, would deter criminal activity and scam tokens.
Vietnam further ranks fifth in terms of crypto adoption, according to the 2024 blockchain report by Chainalysis.
The report further stated that around 17 million people in Vietnam currently own cryptocurrencies and that Vietnamese crypto holders earned around $1 billion in 2023.
Nguyen Duy Hung further mentioned that the top ten crypto exchanges in the world acknowledge the enormous transaction volume coming from Vietnam. However, he concedes that entrepreneurs do not feel secure in the crypto industry because they have no legal framework to protect their business interests.
