Vietnam to Legalize Crypto by March: Boosting Economy and Tax Revenue
1min read Vietnam is set to establish a legal framework for digital assets by the end of March, as part of a broader effort to stimulate economic growth. The move comes after Prime Minister Phạm Minh Chính signed Directive No. 05, aiming for a national growth target of 8% or more by 2025.
The Ministry of Finance (MOF) and the State Bank of Vietnam (SBV) have been tasked with finalizing and submitting proposals for regulating cryptocurrencies by the end of this month. The proposed legal framework is expected to provide greater clarity for crypto businesses, enabling them to access funding and operate within a secure regulatory environment.
Currently, crypto transactions in Vietnam exist in a legal gray area, with many businesses opting to register overseas to avoid local regulations. This has led to lost tax revenues and competitive disadvantages for domestic firms. Government officials are now calling for comprehensive regulation to address these issues.
Crypto has a growing presence in Vietnam, with the country ranked fifth globally in blockchain analysis firm Chainalysis’ 2024 Global Crypto Adoption Index. During the 2023–24 period, blockchain market investments flowing into Vietnam exceeded $105 billion. Establishing a legal framework will help businesses access bank capital and provide a safer, more transparent environment for crypto transactions.
Vietnam's Party General Secretary, To lam, recently endorsed the need to establish a legal framework for virtual assets at the Party Central Committee’s Commission for Policies and Strategies session. Lam emphasized the importance of policies to ensure Vietnam does not fall behind in new financial models and modern trading methods.
As Vietnam positions itself to regulate digital assets, neighboring financial hubs like Singapore and Hong Kong have been proactive in establishing comprehensive crypto regulations. Singapore's regulatory framework, established under the Payment Services Act (PSA) of 2019, governs digital payment token (DPT) providers, requiring them to adhere to stringent compliance and licensing procedures. In 2024, Singapore ramped up its issuance of digital asset licenses, with the Monetary Authority of Singapore (MAS) granting 13 Major Payment Institution (MPI) licenses to crypto exchanges.
Hong Kong has also been taking steps to strengthen its position as a key player in the global crypto market, launching a detailed roadmap to strengthen its digital asset ecosystem. Last month, the city’s Securities and Futures Commission ( 