Vietnam to Develop Legal Framework For Bitcoin and Cryptocurrencies

On March 23, the Deputy Prime Minister of Vietnam, Le Minh Khai, sent the Ministry of Finance a request asking to create a legal framework for digital assets and to begin to make amendments to current laws, as necessary.  

Vietnam Net Global reports the request was made in support of decision 1255, which was originally issued back in August of 2017 from the Prime Minister as approval for finalizing the “legal framework for the management and handling of virtual assets, cryptocurrencies, and virtual currencies.” 

The country later formed a research group in 2020 focused on studying cryptocurrency developments and putting together policies for digital assets.  

Although Vietnam seems to now feel more positively towards digital assets, it hasn't always been that way. The country banned the assets back in 2014 citing them to be too risky and that negative impacts of the currencies may “undermine people’s confidence in the government.” At the time, Vietnamese officials refused to take part in disputes that arose from the use of Bitcoin.  

Progression of Policy Efforts 

Despite the slow progression of Vietnam’s crypto policy efforts, a poll from Finder suggests that Vietnam has the highest number of cryptocurrency holders per capita in the world, sitting at 41% currently.  

To develop a proper legal framework, the Ministry of Finance will work alongside the Department of Justice, Information and Communications, and Vietnam’s central bank to conduct necessary research and develop reports on the economic impact of cryptocurrency. Conducted research will, in part, include an analysis of foreign experience with digital assets, how it ties into the law, and the overall impact that will be imposed by digital currency.

Vietnam Net Global’s report discussed the role of the central bank is to “lead the research, creation and pilot use of virtual money” from 2021-2023.