The Ministry of Finance has instructed the State Securities Commission (SSC) to lead and coordinate with relevant ministries and sectors in researching and developing regulations for managing virtual currencies and virtual assets. So far, the SSC has garnered opinions from numerous ministries and sectors. However, these suggestions have not clarified the research methods and access mechanisms for establishing a legal framework for virtual currencies. The SSC has reached out and had discussions with a major global cryptocurrency exchange that has over 200 virtual currencies and assets on its platform.
The Ministry of Finance explained that virtual currencies and virtual assets are new and relatively sensitive fields in Vietnam. Therefore, the research methods must be approached with utmost caution. The Ministry of Finance also proposed the establishment of an inter-agency task force to develop a plan for managing virtual assets and virtual currencies.
“We will report the opinions of relevant ministries and sectors to the government and discuss the next steps. The research scope of the Ministry of Finance is challenging in terms of establishing a comprehensive legal framework for all aspects of the issue. The definition and scope of virtual currencies and virtual assets have not been officially determined,” said the representative of the Ministry of Finance.
According to Deputy Minister of Finance Nguyen Duc Chi, creating a legal framework for virtual assets and virtual currencies is a difficult and risky issue. Some countries in the world have recognized virtual currencies and virtual assets and allowed trading. However, Vietnamese laws have not yet recognized virtual currencies as assets. In order for virtual currencies to be traded, they must be recognized as assets, and regulations must be established for exchanges and transactions.
Bitcoin price surpasses $60,000 BTC on the market. (Photo: ST)
The representative of the Ministry of Finance also pointed out that in recent times, many cases of investing in virtual currencies have led to risks. State management agencies, including the Ministry of Finance and the SSC, have repeatedly warned about this issue.
Previously, in Decision No. 194/QD-TTg dated February 23, 2024, outlining the National Action Plan to implement the Government’s commitments on anti-money laundering, anti-terrorism financing, and counter-proliferation of weapons of mass destruction, the Government assigned the Ministry of Finance to research and develop a legal framework to prohibit or regulate virtual assets by May 2025.
Common virtual currencies nowadays include Bitcoin, Ethereum, etc. The Government has previously assigned the State Bank of Vietnam to study and pilot virtual currencies to prevent money laundering risks in the banking system. The State Bank of Vietnam believes that virtual currencies or virtual assets (also known as cryptocurrency) such as Bitcoin are not legal tender issued by central banks, but are created by organizations or individuals through algorithms on computer networks.
On March 1st, Bitcoin reached a milestone of over $63,000 USD/BTC (equivalent to 1.56 billion VND/BTC). Currently, there are 11 bitcoin investment funds established, holding more than 300,000 bitcoins. Each country has different ways of managing virtual currencies such as bitcoin. Some countries treat virtual currencies as assets for taxation purposes and regulate their transactions.
