Vietnam to pilot digital currency exchange: report

Vietnam’s Ministry of Finance is set to propose a legal framework for digital assets and cryptocurrencies this month.

Part of this framework includes a pilot program for a state-licensed digital currency exchange, Deputy Minister Nguyen Duc Chi announced at a government press conference, according to local media.

The move comes as Prime Minister Pham Minh Chinh has urged regulators to establish clear guidelines for managing digital assets. 

The Ministry of Finance and the State Bank of Vietnam are working on the framework, which aims to balance innovation with investor protection.

Chi stated that the proposed exchange would allow individuals and businesses to trade digital assets under state supervision, ensuring legal protections and reducing risks. Additionally, the government is exploring regulations to permit Vietnamese enterprises to issue virtual assets as a means of financial mobilization.

Vietnam currently lacks formal legal definitions for digital assets and cryptocurrencies, leading many blockchain businesses to register abroad. 

The absence of clear regulations has resulted in lost tax revenue and limited domestic market oversight.

According to Chainalysis, Vietnam saw $120 billion in digital asset inflows in 2023 and ranks among the top three countries globally for digital asset ownership, with 21% of its population holding crypto. The proposed regulatory framework aims to harness this growing sector while mitigating risks.