Vietnam’s Prime Minister, Pham Minh Chinh, has asked for a proposal to create a legal framework for digital currencies by March. The Ministry of Finance (MOF) and the State Bank of Vietnam (SBV) will work on this proposal to manage digital assets and crypto.
This step is part of a larger plan to boost national growth and economic stability. Vietnam is currently 7th in the world for cryptocurrency ownership, according to Triple-A data.
At present, cryptocurrencies are not considered legal tender in Vietnam. Many businesses register abroad to avoid local rules, which puts local companies at a disadvantage and reduces potential tax income. The Prime Minister highlighted the need for action, noting that there is support from both the government and the public for this initiative.
The proposed legal framework will help businesses get funding from financial institutions more easily. It will also provide users with better transparency, reducing risks in digital currency transactions. Furthermore, it will assist the government in taxing crypto transactions, which will benefit the national economy.
Currently, Vietnam lacks a clear definition of virtual currencies or digital assets. Past attempts to regulate these assets were included in the Law on Digital Technology Industry, which classified cryptocurrencies as intangible assets. By 2025, the government plans to define digital assets based on technology and purpose, which will help clarify regulations and support sector growth.
To aid these efforts, the Vietnamese government is considering creating testing environments, known as sandboxes, to establish a digital asset exchange. This initiative aims to enhance the financial industry and advance Vietnam’s digital currency market. Additionally, the country plans to set up financial hubs in Ho Chi Minh City and Da Nang by 2025.
The Prime Minister’s directive also instructs the Ministry of Finance and the Ministry of Science and Technology (MOST) to draft policies on digital assets and sandboxes, with deadlines for Q2 2025. As Vietnam progresses with these regulations, it aims to become a significant player in the global digital currency market.
