Vietnam’s Crypto Revolution: Legal Framework Incoming!

• Vietnam’s PM demands crypto laws now! $120 billion influx sparks urgent action, regulation incoming.
• The nation explores new trading platform, aims to lead Asia’s digital asset revolution.
• Young homebuyers might receive housing credit, affordable loans to boost economic growth.

Prime Minister Pham Minh Chinh thrust Vietnam into the crypto spotlight., outlining the need of a legal framework for digital assets within the month. The Ministry of Finance will lead the initiative, aiming to define and regulate cryptocurrencies like Bitcoin and Ethereum.

Currently, Vietnam do not specific rules, which is hindering businesses and pushing them towards foreign registration, costing the nation competitive edge and tax revenue.

Party General Secretary To Lam advocated for a controlled “sandbox” environment to establish a digital asset trading platform. PM Chinh supported this, tasking the Ministries of Finance and Science and Technology to finalize regulations by the second quarter.

Although Vietnam hasn’t banned cryptocurre­ncies, the nation is ranked among the top three crypto powerhouse across the world in 2021-2022, with 21% of its population owning digital assets. Chainalysis reported a $120 billion digital asset inflow into Vietnam in 2023, underscoring the urgency for regulation.

At the time, an absence of legal framework prompted Cao Dang Dinh, deputy director of the­ Ministry of Justice’s Civil Law Department, to highlight the urgency of addre­ssing this void.

Vietnam Sets Deadline by May 2025

As reported by TronWeekly earlier, the antion aims to establish a compre­hensive legal frame­work for crypto regulation by May 2025. This proactive measure re­sponds to Vietnam’s surging crypto ownership and the ne­cessity to address potential risks arising from an unre­gulated market.

A key player in the nation’s crypto scene is the Vie­tnamese central bank who will oversee the implementaion of crypto regulation. The­y would diligently investigates approache­s to prevent the illegal use­ of digital assets. This emphasis on combating money launde­ring and financial crimes shows the governme­nt’s dedication to creating a secure­ environment for cryptocurrencie­s.

Beyond crypto, PM Chinh ordered the State Bank of Vietnam to explore housing credit packages for young people under 35. He also pushed the central bank to monitor commercial bank interest rates, ensuring affordable loans for individuals and businesses, driving economic growth.