Vietnam to Pilot Digital Currency Exchange Under New Regulatory Framework

Vietnam is set to pilot a digital currency exchange platform under a new regulatory framework, according to Deputy Minister of Finance Nguyen Duc Chi. The news comes as the government aims to provide a structured and regulated marketplace for investors and individuals to engage in digital asset trading.

On Monday, Prime Minister Pham Minh Chinh ordered the Ministry of Finance and the State Bank of Vietnam to draft legal guidelines for digital asset and crypto management. The proposed framework is due for submission by the end of this month. The Ministry of Finance is tasked with submitting a report to the government in March, proposing a resolution to enable a pilot program for digital and virtual currency exchanges.

The exchange platforms will be operated by state-licensed entities to protect investors’ legal rights. The ministry is also drafting regulations to allow Vietnamese companies to issue virtual assets for capital raising. Currently, Vietnam lacks specific definitions for virtual currencies and digital assets, with existing regulations only covering electronic money tied to legal tender through bank prepaid cards and e-wallets.

Vietnam's interest in digital assets is significant, with 21% of its population owning digital assets, placing the country among the top three globally behind only the UAE and the US. Digital asset inflows to Vietnam reached $120 billion in 2023, according to data from Chainalysis. The absence of clear regulations has prompted many businesses to register in Singapore or the US before operating in Vietnam, resulting in lost competitive advantage and tax revenue.

Last October, Vietnam unveiled its National Blockchain Strategy, with plans to develop the country’s blockchain capabilities and establish legal frameworks for digital assets. The upcoming pilot program and regulatory framework are expected to bolster Vietnam's position as a regional leader in digital asset management and blockchain technology.