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Vietnam is actively considering issuing regulations on cryptocurrency management to ensure financial security and protect investors’ rights. Although cryptocurrencies have not been officially recognized, their increasing popularity has created an urgent need for a clear legal framework.
The Current State of Cryptocurrency Usage in Vietnam
According to data from cryptocurrency payment company Triple A, as of the end of 2021, approximately 20.2 million Vietnamese owned digital assets, accounting for 20.27% of the population. Vietnam also led in cryptocurrency adoption rates among individual investors, with an 881% increase in 2021.
However, due to the lack of a legal framework, cryptocurrency-related activities currently operate in a “gray area,” exposing investors to risks such as fraud, market manipulation, and asset losses on unregulated exchanges.
Financial experts in Vietnam emphasize that the absence of a legal framework for cryptocurrencies has led to tax losses and loopholes for illegal activities such as unauthorized capital raising and fraud. Therefore, Vietnam needs to develop regulations to manage cryptocurrencies, aiming to control, prevent, and minimize their use for illicit purposes.
Management Proposals and Recommendations
Experts suggest that Vietnam should clearly define whether cryptocurrencies are classified as assets or securities, require cryptocurrency exchanges to register and comply with strict anti-money laundering (AML) measures, establish regulatory sandboxes to encourage blockchain-based application development under supervision, and balance investor protection with economic innovation and growth.
Globally, many countries have already established regulations for cryptocurrency management. In the United States, cryptocurrency exchanges are legal and fall under the jurisdiction of the Bank Secrecy Act (BSA). Cryptocurrency service providers must register with the Financial Crimes Enforcement Network (FinCEN), implement AML and Counter-Terrorism Financing (CFT) programs, maintain appropriate records, and submit reports to relevant authorities.
In the international context, Vietnam must quickly establish a comprehensive legal framework for cryptocurrency and digital asset management to ensure financial security, protect investors’ rights, prevent tax losses, and combat illegal activities.
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