Ministry of Finance must submit Resolution on virtual currency management this week

The above content is stated in the Official Dispatch dated March 9 of Prime Minister Pham Minh Chinh on cutting administrative procedures, improving the business environment, and promoting socio-economic development.

The Ministry of Finance is working with the State Bank to propose and submit a legal framework for the management of digital assets and cryptocurrencies. Thus, as requested in the Prime Minister's telegram, the Ministry of Finance will have to submit a dossier on the Resolution on the management of virtual assets and crypto assets this week.

At a press conference on March 5, Deputy Minister of Finance Nguyen Duc Chi said that this Resolution is expected to include content on allowing the pilot operation of digital currency and virtual currency trading floors. This is to help investors and individuals have a place to trade and invest in virtual assets.

More specifically, according to the leader of the Ministry of Finance, the trading floor will be organized and operated by units licensed by the State. That is, the State will protect the legal rights of investors and people when participating in this market.

In addition, the operator will develop regulations to allow Vietnamese enterprises to issue virtual assets to mobilize financial resources. This will help enterprises catch up with the general trend of virtual assets, contribute to economic development, and serve growth goals.

Cryptocurrencies such as Bitcoin, Ethereum... are considered popular virtual assets. However, Vietnam does not have a specific definition of virtual currency and virtual assets. Current regulations only mention the concept of electronic money anchored to legal currency, existing in the form of bank prepaid cards and electronic wallets.

The lack of a legal framework for digital assets has led many businesses to register in Singapore or the US and then operate in Vietnam, causing a loss of competitive advantage and tax revenue. From the user's perspective, the lack of transparency leads to risks in transactions. Therefore, the early promulgation of a legal framework to regulate the identification and valuation methods of digital assets will help businesses access capital from banks, thereby having money to invest.

According to the Vietnam Blockchain Association (VBA), Vietnam will have up to 17 million people owning crypto assets in 2024, ranking 7th globally. Last year, Vietnam received more than 105 billion USD in crypto, down from 120 billion USD in 2023.

Also in the telegram, Prime Minister Pham Minh Chinh requested the Ministry of Finance Continue to extend and reduce taxes to support businesses, develop the private economy and mobilize resources for development investment.

The Ministry must develop a Decree to extend the deadline for payment of value-added tax, corporate income tax, personal income tax, land rent, and special consumption tax for domestically produced cars. These decrees must be submitted to the Government before March 15. Along with that, they must complete the draft of the Private Economic Development Project and report to the Government Party Committee in March before submitting it to the Politburo.

In addition to the Ministry of Finance, the State Bank is assigned to closely monitor interest rate developments, find solutions to continue reducing lending levels, encourage foreign banks to participate in the process of handling bad debts, and restructure weak credit institutions in Vietnam.