Vietnam to Establish Legal Framework for Digital Assets

Vietnam is poised to introduce a legal framework for digital assets by the end of March, as part of a wider effort to promote economic growth.

Per reports in local media, the move comes after Prime Minister Phạm Minh Chính signed Directive No. 05, setting a national growth target of 8% or more by 2025.

The Ministry of Finance (MOF) and the State Bank of Vietnam (SBV) have been tasked with finalizing and submitting proposals for regulating crypto by the end of this month.

“The Party has directed, the Government has agreed, the National Assembly has agreed, the People have supported, and the Fatherland has expected,” Chính said, announcing the proposal.

The proposed legal framework is expected to offer greater clarity for crypto businesses, enabling them to access funding and operate within a secure regulatory environment.

Vietnam and crypto

Currently, crypto transactions in Vietnam exist in a legal gray area, as the country has yet to officially recognize the asset class.

Despite this, crypto trading remains prevalent, with many businesses opting to register overseas in places like Singapore and the U.S. to avoid local regulations.

This practice has led to lost tax revenues and competitive disadvantages for domestic firms. In light of this, government officials are calling attention to the need for comprehensive regulation.

Crypto has a growing presence in Vietnam, with the country ranked fifth globally in blockchain analysis firm Chainalysis’ 2024 Global Crypto Adoption Index.

During the 2023–24 period, blockchain market investments flowing into Vietnam exceeded $105 billion.

“Creating this legal framework will help businesses access bank capital and provide a safer, more transparent environment for crypto transactions,” said a representative from the Ministry of Finance.

Vietnam’s Party General Secretary, To Lam, recently endorsed the need to establish a legal framework for virtual assets at the Party Central Committee’s Commission for Policies and Strategies session.

“Policies need to be in place to ensure that Vietnam does not fall behind, miss opportunities, or create a gap with new financial models and modern trading methods,” Lam said.

Crypto in Asia

As Vietnam positions itself to regulate digital assets, neighboring financial hubs like Singapore and Hong Kong have been proactive in establishing comprehensive crypto regulations.

Singapore’s regulatory framework, established under the Payment Services Act (PSA) of 2019, governs digital payment token (DPT) providers, requiring them to adhere to stringent compliance and licensing procedures. ​

In 2024, Singapore ramped up its issuance of digital asset licenses, with the Monetary Authority of Singapore (MAS) granting 13 Major Payment Institution (MPI) licenses to crypto exchanges.

Hong Kong has also been taking steps to strengthen its position as a key player in the global crypto market, launching a detailed roadmap to strengthen its digital asset ecosystem.

Last month, the city’s Securities and Futures Commission (SFC) introduced the “ASPIRe” roadmap for digital asset market growth, oulining strategic initiatives focusing on five key pillars: Access, Safeguards, Products, Infrastructure, and Relationships.

The SFC has already licensed 10 virtual asset trading platforms as of early 2024, and it is actively working to expand its licensing regime, including OTC trading and custodians.