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Prime Minister Pham Minh Chinh assigned the Ministry of Finance and the State Bank to submit a proposal for a legal framework to manage and promote the development of digital assets and digital currencies this March.
Prime Minister Pham Minh Chinh has just signed Directive No. 05/CT-TTg on key tasks and solutions to promote economic growth and accelerate disbursement of public investment capital, ensuring the national growth target of 8% or more in 2025.
Notably, the Prime Minister assigned the Ministry of Finance to preside over and the State Bank, according to its assigned functions and tasks, to propose and submit to the Government in March a legal framework for managing and promoting the healthy and effective development of digital assets and digital currencies.
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, according to experts. 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.
Previously, at a working session with the Central Policy and Strategy Committee on economic growth targets, General Secretary To Lam said it was necessary to study the application of a controlled testing mechanism (sandbox) to establish a trading floor for digital assets.
Last week, the Prime Minister also assigned the Ministry of Finance and the Ministry of Science and Technology to develop policies and regulations on digital assets, sandboxes, etc. by the second quarter at the latest.
According to data from the Vietnam Blockchain Association, in the period of 2021 - 2022, Vietnam is in the top 3 in the world in terms of the percentage of people owning digital assets (equivalent to 21% of Vietnam's population owning), only after the UAE and the US. According to a report by market analysis organization Chainalysis, the flow of digital assets into Vietnam in 2023 will reach 120 billion USD.
TB (summary)