- Vietnam tagged third globally in cryptocurrency gains, recording nearly $1.2 billion in 2023, despite lacking a legal framework.
- Prime Minister Pham Minh Chinh ordered a legal framework for digital assets by March, aiming to support economic growth.
- Authorities plan to regulate digital assets while ensuring financial clarity and preventing risks from unregulated transactions.
Vietnam recorded nearly $1.2 billion in digital asset gains in 2023, ranking third globally behind the U.S. and the UK, according to blockchain analysis firm Chainalysis. Despite the lack of a legal framework, digital asset transactions continue in the country.
No Legal Framework for Crypto Transactions
Currently, Vietnam has no legal justification for the buying, selling, or use of cryptocurrencies. However, crypto transactions remain active. The country lacks a specific definition for virtual currencies and digital assets, as current regulations only address digital money pegged to fiat currency, such as prepaid bank cards and e-wallets.
In February, Vietnam’s Party chief, To Lam, called for a study on applying a sandbox mechanism to establish a digital asset exchange. The Party General Secretary agreed with a proposal to manage digital currencies as a virtual asset class. Authorities aim to balance economic benefits with mitigating risks from unregulated transactions.
Regulatory Measures and Government Directives
According to a post on X by Crypto Rover, Prime Minister Pham Minh Chinh has summoned the Ministry of Finance and the State Bank of Vietnam to offer a legal framework for digital assets by March. This directive, part of the newly signed Directive No. 05, includes measures to drive economic growth to at least 8% in 2025.
The government is prioritizing clear policies to prevent Vietnam from lagging behind in modern financial models and trading systems. Experts state that the absence of a legal framework has led businesses to register in other countries, reducing Vietnam’s competitive edge and tax revenues.
Vietnam ranked second globally in cryptocurrency ownership as a share of its population, according to a 2024 report by Triple-A. The government is working on policies to regulate digital asset transactions while ensuring security and transparency.
The prime minister has also directed the central bank to monitor and supervise credit institutions. Authorities are focusing on ensuring compliance with regulations to maintain economic stability. Additionally, commercial banks must adjust interest rates to support businesses and individuals in accessing credit.
