Vietnam Launching Official Government Research on Crypto to Develop Legal Framework

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Vietnam has just launched an official government research on crypto as it makes a step closer to digital economy. The research will be spearheaded by the Ministry of Finance and will serve as a guide for upcoming crypto legal framework. According to Deputy Prime Minister Le Minh Khai, the Ministry of Finance will work together the ministries of information, communication, and justice to identify documents that need enactment or amendment to manage digital assets in the future.

This is a big step for the Asian country following the central bank’s ban on Bitcoin and cryptos as means of payment a few years ago. While the central bank doesn’t allow crypto trading, the government has no legislation to ban it, resulting in one of the highest crypto adoption rates in the world.

A Move Toward Digital Economy

The move to develop crypto framework isn’t anything new for Vietnam. In 2017, Vietnam’s Prime Minister Nguyen Xuan Phuc announced Decision 1255, developed in order to establish legal framework that will allow the country to manage digital assets. The new research is an expansion of that decree. The Ministry of Finance will now look into all the possibilities and links between crypto and real assets, eventually assessing a timeframe for the implementation of legal framework.

There’s been effort to push ahead with regulatory proposals in the past, yet no decision was reached. The government hasn’t banned the use of cryptocurrencies. Even though the central bank doesn’t allow it, Vietnam’s citizens are very interested in cryptos. They buy and trade at foreign exchanges so Vietnam has one of the highest crypto adoption rates in the world. The new decision will research digital assets in depth and points to a digital future for the Asian country.

The Real Reason Behind the Move

The upcoming legal framework on digital assets including crypto was fueled by the Vietnamese who hold crypto. Over 40% of the country’s residents have admitted to holding cryptocurrencies, which is by far the highest rate in the world. Next in line are India and Indonesia where 30% of the population holds crypto. You can see that it’s a big difference in numbers.

The love-hate crypto relationship is over, and the government recognized that something needs to be done. Crypto’s popularity in the Asian country won’t drop anytime soon, and is the factor that prompted the government to start looking into legal framework. After all, why would it miss the crypto train?

Countries around the world are adopting Bitcoin and digital assets as we speak. The city of Lugano in Switzerland allows its residents to freely use Bitcoin, and we all know El Salvador’s story so far. Malaysia is looking into the possibility of following El Salvador’s example, so it’s clear that the world is intrigued by digital assets.

That’s what people turn to in these insecure times when other assets and fiat money are unstable too. Crypto’s flag has been flying high, and it’ll go even higher if Vietnam accepts it with open arms.

March 30, 2022: • No Comments

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