Vietnam’s Government Explores Cryptocurrency Legal Framework, Collaborates with Binance for Insights

By 0xGorki 10/8/23 12:20 AM

In a move to address the growing importance of cryptocurrencies in the modern economy, the Vietnamese Ministry of Finance is proposing the establishment of an interdisciplinary task force to review and research the development of a legal framework for cryptocurrencies. This announcement comes in the wake of Prime Ministerial Decision No. 1255/QĐ-TTg in 2017, which approved the plan to enhance the legal framework for managing and regulating virtual assets, electronic money, and cryptocurrencies.

The government has entrusted various relevant ministries and agencies, including the Ministry of Finance, the Ministry of Justice, and the State Bank of Vietnam, to collaborate on researching and proposing policy frameworks. However, despite these efforts, a comprehensive legal framework for cryptocurrencies is yet to be established.

Recently, the Ministry of Finance, which plays a pivotal role in this endeavor, released an update on the progress. Mr. Hoang Van Thu, Deputy Chairman of the State Securities Commission (SSC), disclosed that his agency has been tasked by the Ministry of Finance to lead and coordinate efforts with other ministries and agencies in developing regulations for virtual assets and cryptocurrencies. Over the past months, the SSC has gathered opinions from various relevant bodies, but, as Mr. Thu stated, the viewpoints on cryptocurrencies remain “unclear” to this day. Consequently, creating a legal framework for these assets has proven to be a challenging and intricate process.

Mr. Thu emphasized that this is a particularly sensitive area compared to other economic and social management activities, especially when it comes to combating financial crimes. Defining the concept of cryptocurrencies has remained elusive both in Vietnam and globally. Different nations have adopted varying approaches to this issue, making the application of international norms complicated. From the Ministry of Finance’s perspective, Mr. Thu stressed that a comprehensive policy framework for cryptocurrencies would require a more extensive and all-encompassing research effort.

Consequently, Deputy Chairman of the State Securities Commission Mr. Thu has reported the situation to the Ministry of Finance and proposed the establishment of an interdisciplinary task force to review and research the development of a legal framework for virtual assets and cryptocurrencies.

Mr. Thu also revealed that the SSC is currently in contact and exchanging information with one of the world’s largest cryptocurrency exchanges, Binance, to gain further insights into cryptocurrencies. According to him, Binance offers more than 200 cryptocurrency trading pairs.

Deputy Minister of Finance Mr. Nguyen Duc Chi acknowledged that cryptocurrencies are not a new issue, but rather a complex and risky one that requires a comprehensive evaluation. He noted that some countries have recognized cryptocurrencies and allowed trading, but due to the lack of acknowledgment as assets within the current legal system in Vietnam, it necessitates thorough research for this asset class.

In addition to the proposal for the establishment of an interdisciplinary task force, Deputy Minister Nguyen Duc Chi stated that the Ministry of Finance is committed to actively reviewing and researching recommendations for relevant authorities to create a robust legal framework that ensures effective state management.

The Vietnamese government’s proactive approach to addressing the challenges and opportunities posed by cryptocurrencies reflects its commitment to adapt to the evolving global financial landscape. As the task force takes shape and research progresses, Vietnam may soon see the development of a well-defined legal framework for cryptocurrencies, aligning itself with international standards in this ever-evolving sector.

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