Nikolas Sargeant
Vietnam's Prime Minister Pham Minh Chinh has instructed the Ministry of Finance to lead the development of a comprehensive crypto legal framework by the end of this month. This directive, issued Saturday, tasks the Finance Ministry with formulating draft policies on cryptocurrency management while coordinating with relevant agencies to establish a legal corridor for digital assets.
The State Bank of Vietnam will simultaneously manage interest rates, exchange rates, and credit growth as part of this initiative, according to the Prime Minister's statement.
Vietnam Accelerates Digital Asset Regulation Timeline
This directive comes just one week after PM Chinh had previously assigned the Ministry of Finance and Ministry of Science and Technology to develop crypto policies by the second quarter. The accelerated timeline highlights the government's growing sense of urgency around cryptocurrency regulation.
Last month, Vietnam's Party chief To Lam emphasized the importance of studying sandbox applications to establish a digital assets exchange, signaling the country's increasing openness to blockchain technology. The Prime Minister's push for rapid implementation of a crypto legal framework demonstrates Vietnam's recognition of digital assets' growing significance in the global financial landscape.
Vietnam's Crypto Adoption Surges Amid Regulatory Gaps
Vietnam has emerged as a significant player in the cryptocurrency space, ranking fifth globally in crypto adoption according to Chainalysis's 2024 blockchain report. The country also ranked third in the Asia Pacific region by crypto value received.
The report reveals that approximately 17 million Vietnamese citizens currently own cryptocurrency assets, with investors earning nearly $1.2 billion in profits from Bitcoin and other cryptocurrencies in 2023 alone.
Despite this widespread adoption, Vietnam lacks clear digital asset definitions, with current regulations only addressing electronic money pegged to fiat currency, such as bank prepaid cards and electronic wallets. This regulatory gap has prompted several crypto businesses to relocate to more crypto-friendly jurisdictions like Singapore or the United States, as Vietnam currently offers no specific crypto licensing framework, according to Company Incorporation.
The Prime Minister's directive represents a pivotal moment for Vietnam's engagement with the digital asset revolution. While specific details of the framework remain forthcoming, this decision positions the nation to align with global cryptocurrency regulatory trends.
