Vietnam is set to establish a legal framework for digital assets by the end of March as part of an effort to boost economic growth. According to local reports, this move follows the signing of Directive No. 05 by Prime Minister Phạm Minh Chính, which sets a national growth target of 8% or more by 2025. The Ministry of Finance (MOF) and the State Bank of Vietnam (SBV) have been given the responsibility of finalizing and submitting proposals for the regulation of cryptocurrencies by the end of this month. Chính announced the proposal, stating, “The Party has directed, the Government has agreed, the National Assembly has agreed, the People have supported, and the Fatherland has expected.” The introduction of a legal framework for digital assets is expected to provide more clarity for cryptocurrency businesses, allowing them to access funding and operate in a secure regulatory environment.
Crypto transactions in Vietnam currently exist in a legal gray area as the country has yet to officially recognize this asset class. Despite this, crypto trading is widespread, with many businesses choosing to register overseas in countries like Singapore and the U.S. to avoid local regulations. This practice has resulted in lost tax revenues and disadvantages for domestic firms. In light of this, government officials are emphasizing the need for comprehensive regulation. Vietnam is becoming increasingly involved in the crypto industry, ranking fifth globally in Chainalysis’ 2024 Global Crypto Adoption Index. The country has seen more than $105 billion in blockchain market investments during the 2023-24 period.
A representative from the Ministry of Finance stated, “Creating this legal framework will help businesses access bank capital and provide a safer, more transparent environment for crypto transactions.” Vietnam’s Party General Secretary, To Lam, recently expressed support for establishing a legal framework for virtual assets at the Party Central Committee’s Commission for Policies and Strategies session. Lam emphasized the importance of having policies in place to prevent Vietnam from falling behind, missing opportunities, or creating a gap in relation to new financial models and modern trading methods.
While Vietnam is working towards regulating digital assets, neighboring financial hubs like Singapore and Hong Kong have taken proactive steps to establish 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 comply with strict regulations and licensing procedures. In 2024, Singapore increased the issuance of digital asset licenses, with the Monetary Authority of Singapore (MAS) granting 13 Major Payment Institution (MPI) licenses to crypto exchanges. Hong Kong is also strengthening its position in the global crypto market by launching a detailed roadmap to enhance its digital asset ecosystem. The city’s Securities and Futures Commission (SFC) introduced the “ASPIRe” roadmap, which focuses on five key pillars: Access, Safeguards, Products, Infrastructure, and Relationships. The SFC has already licensed 10 virtual asset trading platforms and is actively working to expand its licensing regime, including OTC trading and custodians.
