Vietnam to Legalize Crypto by March: A Boost for Economic Growth

Vietnam is set to establish a legal framework for cryptocurrencies by March, as directed by Prime Minister Pham Minh Chinh. The Ministry of Finance (MOF) and the State Bank of Vietnam (SBV) are tasked with developing this framework, which will govern the management of digital assets and digital currencies.

The move comes as part of Directive No. 05, aimed at promoting national growth to reach 8% or more by 2025. The Head of Government emphasized the importance of this initiative, stating, "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."

Currently, cryptocurrencies are not recognized as digital currencies in Vietnam. Many businesses register overseas, leading to a competitive disadvantage and tax revenue loss. The proposed legal framework aims to address these issues by providing a clear regulatory environment for digital currency operations.

A legal framework will facilitate access to capital from banks and make investment and funding more accessible. From a user perspective, transparency will help minimize risks associated with transactions, contributing to Vietnam's plan to tax crypto transactions and digital assets.

Vietnam ranks 7th globally in terms of cryptocurrency ownership, according to data from Triple-A. The government has yet to provide a specific definition for virtual currency and virtual assets. Previously, the Government considered incorporating provisions and regulations on digital assets into legal documents under the Law on Digital Technology Industry, classifying crypto as digital data.

In early 2025, the Standing Committee of the National Assembly aims to define and classify digital assets based on purpose, technology, and other criteria. The Vietnamese Government plans to launch and operate Financial Hubs in Ho Chi Minh City and Da Nang in 2025, and has ordered the MOF and MOST to create policies on digital assets and sandboxes by Q2 2025.