Vietnam To Develop Legal Framework for Crypto

• Ministries of Finance, Justice, and Information & Communications will collaborate with the central bank to build a legal framework for crypto.
• The prime minister’s issuance of Decision 1255 gave the government permission to create this legal framework.
• Vietnam is one of the countries with the largest population owning cryptocurrency.

Last week, Vietnamese Deputy Prime Minister Le Minh Khai instructed the ministries of Finance, Justice, and Information & Communications to work with the central bank, the State Bank of Vietnam, and related sectors to build a legal framework for cryptocurrencies.

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The Ministry of Finance has received the main responsibility of putting together an agreement with other regulatory sectors and the central bank. This is to point out specific sections of legislation that need to be amended, supplemented, and promulgated as well as suggest a time frame for its implementation.

On August 21, 2017, the Vietnamese prime minister issued Decision 1255, giving the government permission to develop a legal framework for the governance and operation of “virtual assets, digital currencies, and virtual currencies.” The legal framework will be in accordance with the features set down by Decision 1255.

According to reports, Vietnamese regulators have not come to a decision yet. They also did not specify how they’re going to implement the regulation of cryptocurrency. However, they have put forward several proposals on regulating crypto since November 2018.

Last year, the Ministry of Finance organized a research group on crypto. They started to make suggestions on the legal framework for the supervision of issuance and trading activities.

According to research by Triple A, over 5.9 million people (6.1% of the total population) own cryptocurrency in Vietnam. Vietnam is currently second in the world for the value of retail and all on-chain cryptocurrency transactions. The research shows a significant growth of crypto ownership in Vietnam over the past years.

Vietnam has been housing several cryptocurrency developers, the most successful one is Sky Mavis of Axie Infinity.  As of February 2022, Axie Infinity hit $4B NFTs traded between players. Aside from Axie Infinity, Vietnamese developers have also created other well-known crypto. These include KNC with a market cap of $367 million, TOMO with $293 million, and KAI with $155 million.

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