The Government Proposes to Legalize Digital Assets to Curb Risks

According to the proposal, following the government’s instructions and based on the actual situation, the Ministry of Information and Communications proposed to add content on digital assets, artificial intelligence, and adjust the content of semiconductors.

The draft law reflects that the semiconductor industry is a crucial subdivision of the digital technology industry, relatively complete and physically intensive, with a large enough scale. The draft law stipulates a chapter on “Semiconductor Industry” instead of “Semiconductor Circuits” to ensure comprehensiveness, covering all stages of semiconductor industry activities, aligning with the management objectives and strategies outlined in the Semiconductor Development Strategy.

Recognizing artificial intelligence (AI) as one of the core digital technologies, the draft law provides a definition, management and development principles, and delegates the government to elaborate on this content.

Regarding digital assets, the draft law defines them as intangible assets represented by digital data, created, issued, stored, transferred, and authenticated by digital technology in a digital environment. They are protected by law as property rights, in accordance with civil law, intellectual property law, and other relevant legal provisions. Encoded assets are a type of digital asset.

The draft law authorizes the government to detail the types and management of digital assets and the organizations providing digital asset services, depending on practical conditions. It also outlines measures to safeguard the rights and legitimate interests of organizations and individuals, prevent and limit risks associated with digital assets, and handle related issues.

Presenting the verification report on the bill, Mr. Le Quang Huy, Chairman of the National Assembly’s Committee for Science, Technology, and Environment, stated that the Committee agreed with the necessity to enact the Law on Digital Technology Industry.

According to the verifying agency, to vigorously promote the development of the digital technology industry, clear, feasible, and robust policies are necessary, focusing on core elements such as research and development, infrastructure, finance, human resources, and markets. Additionally, support for training and developing human resources, as well as incentives in areas such as land, taxes, finance, and investment, are crucial.

Mr. Le Quang Huy emphasized the importance of regulating digital assets in the draft law. However, as this is a novel and complex issue, careful consideration is required. It is essential to clarify the classification of digital assets and develop corresponding management regulations, addressing ownership, inheritance, and usage rights, as well as security measures, transaction processes, grievance handling, and intellectual property protection. These regulations should align with international practices, facilitate transactions, ensure tight management, combat money laundering, and promote market transparency.

Agreeing on the necessity of regulations for the semiconductor industry, the verifying agency suggested studying and offering outstanding and feasible incentives. They also proposed considering additional provisions for policies favoring experts and scientists and ensuring the provision of essential infrastructure, including clean energy and water.

Regarding artificial intelligence, the agency suggested a comprehensive study to develop a separate law on artificial intelligence (AI) in Vietnam, covering ownership, intellectual and property rights, and respect for authorship, among other aspects.