New regulations could help legitimise digital assets

This is according to Do Thanh Trung, Deputy Minister of Finance, at a media briefing on April 6. Trung said the ministry (MoF) has been assigned the responsibility of completing the legal framework on cryptoassets and cryptocurrencies, while coordinating with relevant ministries to study the current situation and learn from the experiences of other countries' attempts.

The government directed the MoF to develop a legal framework for managing crypto assets in March, and it has since been coordinating with ministries and agencies to develop policies to ensure the rights and legitimate interests of individuals and organisations participating in the crypto market.

"The MoF has drafted a government resolution to survey opinions from several ministries and agencies. We are currently gathering comments to complete the resolution before reporting to the government," said Trung.

In addition, the draft law on digital technology industry is also expected to be passed in May, which affirms that digital assets are property.

According to the draft law, digital assets are digital technology products created, issued, stored, transferred and authenticated by blockchain technology, of which people have ownership rights according to the provisions of civil law and relevant laws.

The business community is supporting the move, saying that the decision to pilot a digital asset exchange and the potential opportunity for enterprises to issue virtual assets is an impressive, forward-thinking approach that reflects the country’s increasing dedication to exploring innovative technological advancements.

According to experts, Vietnam is one of the most promising emerging markets in the digital asset space of Southeast Asia. With its tech savviness, young population, and proactive approach to blockchain innovation, the country is well-positioned to become a regional leader. Several factors that set Vietnam apart include high crypto adoption, government support, and regulatory progress, all giving the country a competitive edge over other regional markets.

Phan Duc Trung, chairman of the Vietnam Blockchain Association (VBA), cited data from Chainalysis showing capital flows from the blockchain market into Vietnam in the 2023-2024 period reached over $105 billion with profits generated of nearly $1.2 billion in 2023.

According to data from the Triple-A payment gateway, Vietnam has more than 17 million people who own crypto assets, ranking seventh globally. Over 85 per cent of freelancers own crypto assets, the highest in the world; and over 34 per cent of freelancers accept crypto payments.

A representative of Tether, a blockchain-enabled platform that facilitates the use of fiat currencies digitally, said that their company sees Vietnam as a critical part of its long-term vision for digital assets and education, and the company is excited about the potential opportunity to contribute further to the country’s blockchain evolution through strategic support.

"Regulatory clarity helps provide a structured environment for cryptocurrencies to thrive as reliable financial instruments, supporting versatile real-life use cases," said the Tether representative, adding "We look forward to how Vietnam structures its approach to innovations like this."

While the rising popularity of digital assets may pressure stock market liquidity, it also presents opportunities for businesses to adjust models to stay ahead, securities firms acknowledge.

The soaring interest in digital assets makes it essential for Vietnam to pay particular attention to this asset class. Nguyen Tran Minh Quan, legal director of the Vietnam Blockchain Association, talked with VIR’s Hoang Minh about his insights on the lessons Vietnam can learn.

As digital assets gain increasing prominence, many experts believe that exchange-traded funds could be the safest and most feasible approach.