Tightening the Reins on Virtual and Crypto Assets

11 May, 2025

On the afternoon of the 9th of May, the National Assembly discussed the draft Law on Digital Technology Industry.

One of the key topics of interest for the delegates was the regulations surrounding digital assets.

Head of the Committee for Science, Technology, and Environment, Le Quang Huy. Photo: PHAM THANG

Presenting the report on the explanation, reception, and editing of the draft Law, Head of the Committee for Science, Technology, and Environment, Le Quang Huy, stated that there were opinions suggesting the necessity of constructing a legal framework for digital assets that elaborates on core issues. These include determining the rights to assets, ownership, transactions, security, responsibilities, dispute resolution, and risk management. This approach ensures both alignment with current legal systems and international practices while establishing a regulatory mechanism for supervision and risk prevention.

These opinions also requested clarification on whether digital assets can be utilized for exchange or investment purposes and sought to define the intrinsic meaning and classification criteria of digital assets.

According to the National Assembly Standing Committee, the draft Law has incorporated more specific provisions regarding state management of digital assets. These provisions encompass the creation, issuance, storage, custody, transfer, and establishment of ownership rights over digital assets; the rights and obligations of parties involved in activities related to digital assets.

Additionally, the Law includes measures to ensure information security and cybersecurity; prevent money laundering and terrorism; conduct inspections and handle violations related to digital assets; set business conditions for providing encrypted asset services; and issue encrypted assets…

The authority and management of digital assets, virtual assets, and encrypted assets in the electronic environment are delegated to the Government, which will establish regulations suitable for practical conditions.

Furthermore, the reviewing committee has collaborated with the drafting agency and worked with relevant agencies, including the Ministry of Finance, the State Bank, the Banking Association, and the Blockchain Association…

Through these collaborations, several opinions emerged, suggesting the addition of concepts and specific classifications of virtual assets, encrypted assets, cryptocurrencies, NFTs, and notification codes… Regulations regarding the provision of related services are also proposed to protect consumer rights and combat fraud, deception, money laundering, and terrorist financing.

Delegate Dong Ngoc Ba, Permanent Member of the National Assembly’s Committee for Laws and Judiciary. Photo: PHAM THANG

Providing his opinion, National Assembly delegate Dong Ngoc Ba, Permanent Member of the Committee for Laws and Judiciary, remarked that the regulations on digital assets (Article 49 of the draft Law) are a novel feature that addresses long-standing practical needs. These regulations categorize digital assets into three groups: virtual assets, encrypted assets, and other digital assets.

Regarding the classification criteria, Clause 1, Article 50 of the draft Law stipulates that digital assets are classified according to one or more criteria, including purpose of use, technology, and other criteria. However, Delegate Ba from Binh Dinh Province believes that the criteria for these three groups are not entirely reasonable and clear.

In Mr. Ba’s opinion, virtual assets are products created by digital technology but must be associated with a specific virtual environment rather than being generalized. For instance, if virtual assets are in the form of gold, they must be linked to a gaming environment or ecosystem…

“Therefore, the classification aims to establish management mechanisms that account for the differences in the creation and transaction processes of these assets,” analyzed Mr. Dong Ngoc Ba. He further explained that encrypted assets are typically associated with blockchain technology, with Bitcoin, real estate tokens, and NFTs being prominent examples. By understanding these popular assets, we can identify technical criteria to distinguish the three groups of digital assets and implement appropriate management frameworks.

Moreover, as the draft Law on Digital Technology Industry is expected to be promulgated simultaneously with the amendment and supplementation of multiple other laws, Mr. Ba suggested a thorough review to ensure compatibility among the regulations.

REPORTER GROUP

– 18:02 09/05/2025