Vietnam’s Ministry of Finance established research group to develop digital currency-related policy proposals

The Vietnam’s Ministry of Finance has just decided to set up the Ministry of Finance’s research group charged with studying and making policy proposals regarding digital currency, cryptocurrencies, and virtual assets.


Vietnam finance ministry established a research group to develop digital currency

The research team is responsible for researching and proposing management policies and mechanisms according to the functions and tasks of the Ministry of Finance related to virtual assets and virtual currencies.

The research team was established at the proposal of the Chairman of The State Securities Commission Of Vietnam and the Director of the Department of Personnel and Organisation. The group will comprise nine members led by the Vice Chairman of the State Securities Commission, Pham Hong Son.

Previously, on August 21, 2017, Vietnam’s prime minister approved a plan to oversee the development of a legal framework for cryptocurrencies by August 2018, indicating that crypto assets would be legally recognized within the country.

Facing complicated developments, risks, and unpredictable and negative consequences of virtual currencies for the Vietnam market, on April 11, 2018, Directive No 10/CT-TT was issued with the aim to enhance the management of transactions related to Bitcoin and other cryptocurrencies to put it under control and minimize their negative impacts.

Two days later, a directive was issued mandating that credit institutions restrict the services provided to virtual currencies to protect against anti-money laundering risks. Vietnam has not formally updated its regulation since introducing the directives two years ago, with no regulatory framework currently existing for crypto exchanges in the country.

Cryptocurrency exchanges are not regulated in Vietnam

Despite the lack of legislative framework, local firms have made attempts to establish exchanges in Vietnam over the years.

Recently, the P2P trading platforms operated by Binance and Paxful have targeted the Vietnamese market. As AZCoin News reported,

Binance announced on January 20 the launch of peer-to-peer (P2P) trading services for the Vietnamese dong (VND). Users can now buy and sell BTC, USDT, ETH, and BNB with VND using Binance’s P2P platform on the latest version of the Binance iOS and Android mobile apps.

According to CryptoCompare, by the end of November 2017, 80% of Bitcoin transactions originated from Asia, of which the four largest markets were China, Japan, South Korea, and Vietnam. The amount of access from Vietnam to some Bitcoin exchanges or virtual money information sites in the world such as Bittrex, Poloniex, Coinmarketcap, … is always in the top 5 with the United States, Russia, Japan.

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