“Transforming Trillions in Fraudulent Funds into Cryptocurrency Assets”

Cryptocurrency Transaction Value Surpasses $220 Billion

Today (October 2), as part of the National Innovation Day, the forum “Digital Asset Market: From Trends to Breakthroughs” took place.

Mr. Vũ Quốc Huy, Director of the National Innovation Center (NIC), shared that according to Chainalysis data, Vietnam ranks third in the region with cryptocurrency inflows exceeding $220 billion, a 55% increase from the previous year. This highlights the significant demand for money transfers, savings, and applications in digital services.

However, most activities still occur on international platforms, leading to tax losses and challenges in anti-money laundering, counter-terrorism financing, and high-tech crime prevention. This underscores the need for a transparent, regulated domestic market to protect stakeholder interests.

Recently, the Government issued Resolution 05/2025/NQ-CP on the pilot cryptocurrency market. Mr. Tô Trần Hòa emphasized that this resolution is crucial for establishing a domestic cryptocurrency market, with clear regulations on issuance conditions, requiring issuers to be Vietnamese legal entities backed by real assets. It also sets stringent standards for Virtual Asset Service Providers (VASPs).

VASPs must have a minimum charter capital of 10,000 billion VND, foreign ownership not exceeding 49%, and Tier 4 technology infrastructure on a 5-tier scale. Beyond trading and custody services, they must ensure transparent disclosures, segregate client assets, and establish dispute resolution and compensation mechanisms.

Mr. Hòa believes this pilot framework not only fosters innovation but also acts as a “filter” to eliminate risky models. This will enhance market transparency, build investor confidence, and align Vietnam with international standards in cryptocurrency regulation.

Cryptocurrency Exploitation and Tax Evasion

From a crime prevention perspective, Senior Lieutenant Nguyễn Thành Chung, Deputy Head of Division 4, Department of Cybersecurity and High-Tech Crime Prevention (A05), Ministry of Public Security, stated that Resolution 05 and the Digital Technology Industry Law are vital for enhancing high-tech crime prevention.

Mr. Chung noted that cryptocurrencies are increasingly exploited for illegal fundraising and activities online, posing risks to national security, social order, tax evasion, and macroeconomic management. From 2019 to 2024, nearly 20,000 fraud cases involving over 17,000 suspects caused losses exceeding 12,000 billion VND.

In these cases, illicit funds are often converted into cryptocurrencies through peer-to-peer transactions on international platforms like Binance, HTX, and OKX, with daily volumes reaching trillions of VND.

The A05 representative also warned about unlicensed cryptocurrency exchanges collecting and storing vast customer data without complying with the Cybersecurity Law or Personal Data Protection Law.

“Licensed domestic cryptocurrency transactions not only enhance anti-money laundering and counter-terrorism efforts but also protect customer rights in disputes,” Mr. Chung emphasized.

Mr. Phan Đức Trung, Chairman of the Vietnam Blockchain and Digital Asset Association (VBA) and 1Matrix Company, suggested that piloting with secure and transparent assets like government bonds, money market funds, or treasury bills aligns with Resolution 05, enabling market launch in line with international standards and fostering sustainable growth.

Mr. Trung also stressed the importance of international collaboration, highlighting partnerships with leading financial institutions like BlackRock, Franklin Templeton, HSBC, and JPMorgan as key to adopting global best practices and attracting long-term capital.