Vietnam’s Deputy Prime Minister has instructed the country’s finance ministry to put in place a legal framework to govern the digital currency industry.
In a recent notice, Le Minh Khai gave the Ministry of Finance the power to oversee fledgling industry in Vietnam. As part of its responsibility, the Ministry must formulate a legal framework for the industry, taking into account existing technological and financial regulations and proposing modifications if necessary.
As reported Per Vietnam Net, Khai further asked the Ministry of Finance to work with other ministries on the initiative, including Justice, Information and Communications. The State Bank of Vietnam is also to be included in the process, which could finally give digital currency entities legal recognition and protection in the Southeast Asian country.
The latest initiative follows Decision 1255, which was issued in August 2017 by then-Prime Minister Nguyen Xuan Phuc. He called for the establishment of a legal framework to manage digital assets. Khai’s decree will further study the relationship between digital assets and physical assets, as well as the regulations that may apply to both.
Vietnam is a digital currency hub, with the Chainalysis Global Crypto Adoption Index Ranking it was the first in the world to be adopted with a perfect score of 1. The country ranked second in on-chain retail value received and third in peer-to-peer trade volume.
Despite this aggressive adoption, the government has done little to encourage the growth of the local market for virtual assets. Apart from Decision 1255, it has yet to implement regulations to protect investors or encourage institutions to engage in digital asset trading, even as neighboring countries such as Thailand step up their oversight of the industry. .
In 2017, the State Bank of Vietnam became one of the first to to forbid digital currencies for payments, a move Thailand recently made.
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