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The Government’s Decree No. 52/2024 has introduced several provisions on electronic money, including a definition to clarify its nature.
According to Article 3, electronic money refers to Vietnamese Dong values stored on electronic devices and supplied on a basis of correspondence with the amount of money prepaid by customers to banks, branches of foreign banks, or e-wallet service providers.
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Entities supplying electronic money include banks, branches of foreign banks (providing e-wallet and prepaid card services), and e-wallet service providers (offering e-wallets linked to customers’ payment accounts with banks).
Article 6 specifies that e-wallets and prepaid cards are means of storing electronic money. Banks and branches of foreign banks are authorized to issue and supply these instruments, subject to the regulations set by the State Bank of Vietnam (SBV).
E-wallet service providers must maintain a total balance across all assurance accounts for e-wallet services opened at banks or branches of foreign banks that is no lower than the total balance of all issued e-wallets. They are only permitted to provide services for e-wallets linked to customers’ payment accounts or debit cards.
According to the SBV, the refined legal framework for electronic money in Decree 52 will contribute to preventing and excluding illegal payment instruments issued by unauthorized organizations. It will also support competent authorities in combating violations in the field of electronic money, as outlined in the Project for completing the legal framework for managing and handling virtual assets, electronic money, and virtual currencies approved by the Prime Minister in Decision No. 1255/QD-TTg dated August 21, 2017.
Amendments regarding international payments
Decree 52 introduces amendments to clarify the concepts of international payment and international payment system, as well as the SBV’s role in managing international payments. It also provides regulations on activities involving the provision of services from and to Vietnam, the implementation of international financial switching services, and the approval process for commercial banks and branches of foreign banks to participate in international payment systems. Additionally, it mandates that relevant parties provide comprehensive and timely information to meet the requirements of state management agencies, as stipulated by Vietnamese law, to effectively manage cross-border transactions.
Revisions to provisions on opening and using payment accounts
In monitoring the implementation of legal provisions on payment accounts, Decree 52 has made revisions to certain content for better alignment with practical situations. These revisions pertain to the opening and use of payment accounts, authorization for using payment accounts, account freezing, post-freeze handling, circumstances for account closure, and the treatment of remaining balances upon account closure, among other related matters.
Furthermore, Decree 52 introduces provisions concerning the provision of non-account payment services to public utility service providers and amends regulations related to the provision of intermediary payment services.
