Vietnam’s Prime Minister Pham Minh Chinh has called for a legal framework for cryptocurrency by the end of this month.
He has directed the Ministry of Finance (MOF) and the State Bank of Vietnam (SBV) to take charge of the regulations. His order aims to set up clear rules for digital assets and prevent tax losses.
The Need for Attention
The MOF will lead the drafting process. It will work with other government agencies and local authorities to speed up the development of digital asset laws. The SBV will focus on managing financial policies such as interest rates, exchange rates, and credit growth.
Urgency Behind the Move
PM Chinh’s directive is part of a larger effort to boost Vietnam’s economy. He recently signed Directive No. 05, which outlines solutions to achieve national growth of at least 8% in 2025. Creating a legal framework for digital currencies is crucial in this plan.
Currently, Vietnam does not recognize crypto as a legal currency. Many businesses dealing with digital assets register in other countries, such as Singapore or the US, and then operate in Vietnam.
This puts local companies at a disadvantage and results in tax revenue losses. The Prime Minister wants to change this by bringing crypto under Vietnam’s legal and financial system.
Government’s Stand on Crypto
PM Chinh stressed that the decision to regulate crypto is widely supported. “The Party has directed, the Government has agreed, the National Assembly has agreed, the People have supported, and the Fatherland has expected. So just discuss to action, not to retreat,” he said.
Last week, the Prime Minister instructed the Ministry of Finance and the Ministry of Science and Technology to create crypto policies by the second quarter.
The push for regulations comes after Vietnam’s Communist Party Chief, To Lam, suggested exploring sandbox applications to set up a digital asset exchange.
Global Trend Towards Crypto Regulations
Vietnam is not alone in its efforts to regulate digital currencies. Governments worldwide are taking steps to establish crypto frameworks. Countries like the US, the UK, and EU have introduced policies to manage digital assets.
Others, such as China, have imposed strict bans. Meanwhile, regions like the European Union are working on comprehensive crypto laws.
With digital currencies gaining popularity, nations are realizing the need for clear regulations. Vietnam’s latest move signals its intent to stay competitive in the evolving financial landscape. The new framework could help the country balance innovation and financial security.
Also Read: 22 U.S. States Push for Bitcoin and Digital Asset Regulations Amid Growing Crypto Adoption