Vietnam's Prime Minister Pham Minh Chinh has called for the submission of a proposal to establish a legal framework for digital currencies in March. The Ministry of Finance (MOF) and the State Bank of Vietnam (SBV) are tasked with creating the proposal for managing digital assets and cryptocurrencies. This initiative follows a recent directive aimed at promoting national growth and increasing economic stability. The move is seen as crucial in regulating the growing digital asset market in Vietnam, which ranks 7th globally in cryptocurrency ownership, according to data from Triple-A. As of now, cryptocurrency is not recognized as legal tender in Vietnam, and many businesses that operate in the country register abroad to avoid local regulations. This has created a competitive disadvantage for local companies and has led to a loss in potential tax revenue. The Prime Minister emphasized the importance of taking action, stating that all levels of government and the people have shown support for the initiative. With this legal framework, businesses will be able to access capital from financial institutions more easily, and users will benefit from greater transparency, helping minimize risks associated with digital currency transactions. Additionally, the framework will help the government in taxing crypto transactions and digital assets, contributing to the national economy. Currently, the Vietnamese government does not have a clear definition of virtual currencies or digital assets. The country’s previous efforts to regulate digital assets were incorporated into the Law on Digital Technology Industry, classifying crypto as intangible assets. In 2025, the government plans to classify digital assets based on factors like technology and purpose. This is expected to create clearer guidelines for the regulation of digital assets, which will contribute to the growth of the sector. To support these efforts, the Vietnamese government is also exploring the possibility of setting up testing mechanisms, known as sandboxes, to help establish a digital asset exchange. This initiative is expected to boost the financial industry and help Vietnam develop its digital currency market further. Moreover, the country plans to launch financial hubs in Ho Chi Minh City and Da Nang by 2025. The Prime Minister’s recent directive also mandates the Ministry of Finance and the Ministry of Science and Technology (MOST) to draft policies related to digital assets and sandboxes, with deadlines set for Q2 2025. As Vietnam moves forward with these regulatory efforts, the country aims to position itself as a key player in the global digital currency space.
