It is necessary to improve the legal framework for cryptocurrency market
![]() | PM asks central bank to study pilot implementation of cryptocurrency |
![]() | Legal framework needed to better manage cryptocurrency market |
![]() | Central bank gives no permission to cryptocurrency platforms |
![]() |
Dr. Pham Nguyen Anh Huy, Senior Lecturer in Finance, Founder of RMIT FinTech-Crypto Center, RMIT University Vietnam. |
What do you think about the cryptocurrency market in Vietnam today?
During the period from late March 2020 to mid-November 2021, crypto projects mushroomed.
With the "get rich quick" and "gambling" mindset of most Vietnamese crypto investors along with the lack of a legal framework, Vietnam was being evaluated as one of the most dynamic crypto trading hubs in the world.
When faced with some scam projects, investors still somewhat believe in the ability to recover losses by betting on other projects leading to further losses. This behavior may be caused by investors thinking that crypto projects just like any startup that can have a failure rate of over 90%. This mindset will not help investors, especially retail investors, because, in the long run, they will be pushed out by big players or "whales" due to the manipulative nature of the market.
Despite the above challenges, Vietnam maintains a unique position - a nascent cryptocurrency hub and is growing in various respects. The reason comes from the fact that Vietnam still has a significant proportion (about 68-70% of the population) of working-age adults in the next 10 to 15 years. Vietnam is also predicted to have about 50% of the population in the middle class by 2030, becoming one of the top 20 economies with the largest population in the middle class.
As a young and tech-savvy population, they are expected to drive cryptocurrency adoption. In addition, education is also key to maintaining Vietnam's position as a crypto hub. Vietnam gathers universities with high rankings in blockchain and cryptocurrency education.
However, Vietnam still lacks a legal framework for cryptocurrencies. How will this affect activity in the market, sir?
Currently, the legal regulation of cryptocurrencies in Vietnam is still unclear. The government is aware that crypto assets can destabilize the financial system and the economy if they are not controlled. While cryptocurrency exchange providers have to go through a rigorous selection process to obtain a license in Singapore and then Hong Kong, exchanges like Binance or Remitano are free to operate in Vietnam without owning a financial service provider license. Besides, investors who earn profits from cryptocurrencies do not have to pay any taxes.
Therefore, the lack of a legal framework has led to a number of problems. Specifically, the lack of tools to protect investors if they are scammed, encountered difficulties in tracing crypto-related criminal and fraudulent activities such as money laundering, the volatile business environment and particularly, the Tax authority is not able to collect taxes from crypto-related activities. In the long run, these issues could decrease market confidence and make Vietnam less attractive, especially once the “excitement” wears off.
With the above problems, in your opinion, how should the relevant ministries and agencies act?
Relevant agencies need to amend, supplement and promulgate new regulations to improve the legal framework for the management and handling of virtual assets, virtual currencies, digital assets, and cryptocurrencies.
This is a necessary action when Vietnam plans to establish a modern and sustainable national digital financial foundation, contributing to economic growth, while ensuring macroeconomic stability and financial security. Vietnam needs to take the necessary actions to become a crypto hub with a favorable regulatory framework and to be the headquarters of the world's top crypto companies. The implemented crypto projects will help promote national innovation as well as the digital economy.
Furthermore, the public and private sectors must be willing to experiment with cryptocurrencies to increase liquidity and efficiency and contribute to reducing financial risks when the regulatory framework is solid and facilitated. Therefore, Vietnam still has a lot of work to do, otherwise, Vietnam could lose its chance to be a pioneer in this cryptocurrency race.
Thank you Sir!
Related News

Complying with regulations of each market for smooth fruit and vegetable exports
13:06 | 09/01/2025 Import-Export

Request for price management and stabilization, avoiding unusual fluctuations during Tet 2025
13:56 | 30/12/2024 Headlines

Six export commodity groups see billion-dollar growth
07:55 | 31/12/2024 Import-Export

Automobile localization: rapid development from internal strength
07:44 | 31/12/2024 Headlines
Latest News

Focusing on inspecting inventory of public assets at units with large and complex assets
16:31 | 15/02/2025 Finance

The government seeks approval for revised GDP, CPI targets
16:28 | 15/02/2025 Finance

Fiscal, monetary policies support demand stimulation, price stabilisation
14:49 | 14/02/2025 Finance

Vietnam secures VND 157 billion from state enterprise divestment in 2024
09:16 | 14/02/2025 Finance
More News

Vietnam gears up for potential inflation impact in 2025
14:26 | 11/02/2025 Finance

VN’s credit conditions in 2025 expected to be stable
14:24 | 11/02/2025 Finance

State revenue in first month of the year equal to 14% of the estimate
10:12 | 11/02/2025 Finance

Securities 2025 expects a breakthrough in scale and quality
14:37 | 10/02/2025 Finance

Cash reserves in stock accounts at six-quarter low amid margin rise
08:23 | 10/02/2025 Finance

Five solutions for developing stock market in 2025
10:01 | 07/02/2025 Finance

Minister of Finance Nguyen Van Thang works with GDVC at the first working day after the Tet holiday
14:43 | 04/02/2025 Finance

The stock market after Tết 2025 presents both challenges and opportunities
07:55 | 04/02/2025 Finance

Opportunities and challenges in Việt Nam's crypto boom
14:27 | 03/02/2025 Finance
Your care

Focusing on inspecting inventory of public assets at units with large and complex assets
16:31 | 15/02/2025 Finance

The government seeks approval for revised GDP, CPI targets
16:28 | 15/02/2025 Finance

Fiscal, monetary policies support demand stimulation, price stabilisation
14:49 | 14/02/2025 Finance

Vietnam secures VND 157 billion from state enterprise divestment in 2024
09:16 | 14/02/2025 Finance

Vietnam gears up for potential inflation impact in 2025
14:26 | 11/02/2025 Finance