Vietnam is gearing up to establish a legal regime for digital assets by the end of March, in a welcome next step in the country’s ongoing initiative to regulate the cryptocurrency industry and spur economic development.
The decision comes after Prime Minister Phạm Minh Chính signed Directive No. 05, which aims to grow the economy by 8% or more by 2025. To comply with this direction, the Ministry of Finance (MOF) and the State Bank of Vietnam (SBV) have been instructed to develop and send proposals to control cryptocurrencies by the end of the period.
Vietnam regulates crypto to boost adoption
In announcing the proposal, Chính highlighted widespread government and public backing, saying, “The Party has directed, the Government has agreed, the National Assembly has agreed, the People have supported, Fatherland has expected.”
Cryptocurrency transactions are not illegal, but they are also in a legal gray area in Vietnam because the asset class has yet to receive an official stamp of approval. Yet crypto trading is notoriously spreading, while many companies prefer to open their doors to foreign countries like the U.S. or Singapore to escape the gray shield that uncertainty offers.
This regulatory gap has led to lost revenue and crippled domestic firms. In response to those challenges, lawmakers are calling for sweeping regulations that would bring crypto-based activity into the established economy.
Vietnam expands crypto regulations to compete with global financial hubs
Cryptocurrency adoption in Vietnam continues to rise, with the 2024 Global Crypto Adoption Index recently announced by blockchain analytics firm Chainalysis placing Vietnam among the top countries in the world for crypto. It ranks in the top five. From 2023 to 2024, blockchain market investments flowing into Vietnam were more than $105 billion.
According to the Ministry of Finance, establishing this legal framework is expected to make it easier for businesses to access bank finance while creating a safe and transparent space for cryptocurrency transactions.
Vietnam’s Party General Secretary, To Lam, has similarly called for greater regulatory progress in the digital asset sector. During an address at a Party Central Committee’s Commission for Policies and Strategies session, Lam stressed proactive policymaking.
“Policies must be implemented so that Vietnam does not miss opportunities, slip behind, or create a gap compared to new financial models and modern trading methods,” he said.
Vietnam aims to regulate digital assets as neighboring financial centers, including Singapore and Hong Kong, are still tightening their crypto regulatory frames.
The regulatory landscape in Singapore was designed under the Payment Services Act (PSA) of 2019 for digital payment token (DPT) providers and already enforces strict compliance and licensing processes.
In 2024, Singapore increased the issuance of digital asset licenses by granting 13 Major Payment Institution (MPI) licenses to crypto exchanges under the Monetary Authority of Singapore (MAS) policy.
Hong Kong also launched the “ASPIRe” roadmap to encourage crypto market development and has been advancing its digital asset ecosystem. The roadmap identifies four strategic priorities that must be acted upon in the five key areas of Access, Safeguards, Products, Infrastructure, and Relationships.
In early 2024, 10 virtual asset trading platforms were licensed in the jurisdiction city’s Securities and Futures Commission (SFC), and there are plans to extend the licensing regime to over-the-counter (OTC) trading and custodial services.
By establishing a clear framework for cryptocurrency businesses, the Vietnamese government aims to lure investment in crypto businesses, prevent loss of tax revenue, and create competitive ecosystem norms on par with international standards.
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