Tiếng Việt
中文 (中国)
日本語
The Vietnamese government has ordered the implementation of a legal framework regarding virtual assets, directing the Ministry of Finance to conduct research and propose a legal framework by May 2025 to prohibit or regulate virtual assets to combat money laundering and address issues related to virtual assets gradually becoming more prevalent in Vietnam.
In the National Action Plan on Anti-Money Laundering and Countering the Financing of Terrorism, the government also tasked the State Bank of Vietnam with assessing money laundering risks in casino business activities, games of chance, and virtual assets, to be completed by September.
The Ministry of Finance is tasked with developing a legal framework to control or restrict virtual assets and related service providers. This task is expected to be completed by May 2025. The objective is to minimize the risks associated with money laundering and terrorist financing through these types of assets.
Currently, Vietnam lacks a specific definition of virtual currency and virtual assets. Current regulations only refer to the concept of cryptocurrency-related to the law, existing in the form of bank prepaid cards and electronic wallets. These are not virtual currency or assets, nor are they some other common types of money in the financial and investment fields.
Digital currencies such as Bitcoin, Ethereum, etc., are considered popular virtual assets. Previously, the government has repeatedly tasked the State Bank with researching and piloting virtual currency to prevent money laundering risks in the banking system. However, regulatory agencies have repeatedly affirmed that virtual currency is not a legal means of payment in Vietnam. The Anti-Money Laundering Law (amended) at the end of 2022 has not adjusted virtual currency and virtual asset types.
The buying and selling of virtual assets are currently often conducted through international exchanges or through direct agreements. This carries the risk of money laundering and may not be limited to organizations as individuals may also participate, creating a complex and difficult-to-control system of legal violations. Therefore, two years ago, the National Assembly proposed that the government promptly establish a legal framework related to this new type of asset.
According to data from the Vietnam Blockchain Association (VBA) in September 2023, the value of virtual assets received in Vietnam was nearly $91 billion in one year (from October 2021 to October 2022), with illegal activities accounting for $956 million.
Building a rigorous legal framework to regulate issues related to these massive-value assets is urgent, especially in an era of rapid technological advancement.
For example, many countries such as the United States, South Korea, and Europe have pioneered separate legal systems to regulate issues related to virtual assets. Europe has the MiCA law to prevent financial crimes using blockchain technology. The United States and South Korea have also introduced many regulations against money laundering and terrorist financing related to digital currency and virtual assets.
Vietnam’s adoption of legal experiences from these legal jurisdictions is necessary to be recognized as an advanced country with a robust legal system to combat money laundering. One of the main reasons for building a legal framework for virtual assets is also to remove Vietnam from the FATF gray list on money laundering before May 2025.
****ASL Law is a leading full-service and independent Vietnamese law firm made up of experienced and talented lawyers. ASL Law is ranked as the top tier Law Firm in Vietnam by Legal500, Asia Law, WTR, and Asia Business Law Journal. Based in both Hanoi and Ho Chi Minh City in Vietnam, the firm’s main purpose is to provide the most practical, efficient and lawful advice to its domestic and international clients. If we can be of assistance, please email to [email protected].
ASL LAW is the top-tier Vietnam law firm for banking & financial services. If you need any advice, please contact us for further information or collaboration.
