Legal framework for crypto assets to be finalised next year

Bitcoin is now the most valuable cryptocurrency. (Photo: cafef.vn)

The Government has assigned the Ministry of Finance to research and develop a legal framework to ban or regulate crypto assets in May 2025 with an aim to combat money laundering.

The direction is under the Government Decision 194/QĐ-TTg dated February 23, 2024, which promulgates the national action plan to implement the Vietnamese Government's commitments on preventing and combating money laundering, terrorist financing, and financing for the proliferation of mass destruction weapons.

Besides the development of the legal framework for crypto asset management, the decision also requires the ministry to enforce the legal framework, including improving understanding for management and supervisory agencies about the risks of the issue.

This is among 17 action programmes to implement the Vietnamese Government's commitments on preventing and combatting money laundering, terrorist financing, and financing for the proliferation of mass destruction weapons.

Previously, answering questions at the National Assembly session in October 2022, leaders of the State Bank of Vietnam said cryptocurrency and crypto assets, such as Bitcoin and Ethereum, are not currencies that are legally issued by central banks of countries, but are created by organisations and inpiduals through using algorithms on computer networks.

Cryptocurrency is only recognised as a means of payment in certain communities such as the gaming community and technology platforms.

Currently, each country has a different way of managing cryptocurrency. Some countries consider cryptocurrency an asset, like securities, to collect taxes and grant licence for transactions.

Previously, the Government also assigned the State Bank of Vietnam to research and pilot cryptocurrency with an aim to prevent money laundering risks in the banking system.

Vietnam’s management agencies have repeatedly affirmed that cryptocurrency is not a legal currency or means of payment in Vietnam. The Law on Prevention of Money Laundering passed at the end of 2022 has not also legislated cryptocurrency and crypto assets./.