Vietnam’s Deputy Prime Minister, Le Minh Khai, has instructed the State Treasury to draft a regulatory law for the digital asset sector. Managing virtual assets has emerged as an important theme in Vietnam, among other countries. Binding digital assets by law not only puts the category under the economic framework of the country, but also loses the risk of being misused for illegal activities. The Ministry of Justice, the Ministry of Communications and Information, and the State Bank of Vietnam are also participating to fine-tune cryptography.
Vietnamese officials are tasked with identifying different areas around the digital asset category. These include research on the nature of crypto assets and analysis of foreign experiences with cryptocurrencies.
According to a report from Vietnam Net, the relationship between virtual assets and fiat currencies and physical assets is also attracting attention as a topic of research that shapes Vietnam’s cryptography.
Recently, some countries have come to support the “overregulated” approach.
Today, India, Australia, Dubai and Brazil have taken the first step towards making the crypto sector comply with their respective laws.
The United States and the United Kingdom have also issued orders on the development of legislation to monitor and regulate the crypto sector.
Because crypto assets are decentralized and inherently untraceable, they are also more likely to be used to perform illegal activities such as money laundering and terrorist financing. This is one of the major reasons governments around the world are trying to put this sector on the grid.
Cryptocurrencies, which can facilitate large volumes of immediate transactions, are considered a threat that can challenge the physical currency position. To eradicate this fear, the government is looking for a “CBDC” or central bank digital currency. The CBDC is built like a cryptocurrency in blockchain technology, but is managed by a central bank.
The State Bank of Vietnam has also been instructed to lead the investigation, creation and pilot use of cryptocurrencies by 2023.
According to blockchain research firm Triple-A, Vietnam has more than 5 million crypto holders, accounting for more than 6% of the population.
