Aiming to become a regional hub while managing risks, the Vietnamese Ministry of Finance proposes a legal sandbox for digital asset trading and issuance.
Vietnam is gearing up to enter the digital asset game. In a move that could shape the future of its financial landscape, the Ministry of Finance has submitted a draft resolution to pilot the issuance and trading of digital assets — a strategic initiative that seeks to balance innovation with risk management.
Digital Gold Rush: Opportunity Meets Caution
The momentum behind this move is clear. Dr. Dang Minh Tuan, President of the Vietnam Blockchain Union, cited estimates showing that digital asset flows into Vietnam in 2023 reached between $105 billion and $120 billion, equivalent to a staggering 25% of the country’s GDP.
“Digital assets are a cornerstone of the digital economy,” said Dr. Tuan. “Vietnam has the potential to become a leading hub for digital asset development — not just in the region, but globally.”
But with opportunity comes caution. Dr. Tuan warns that digital assets are volatile by nature and often cross borders invisibly, creating regulatory blind spots that make them hard to control — especially when it comes to money laundering, anonymous transactions, and terrorism financing.
“Our legal system hasn’t yet caught up. This pilot will be launched without a tested regulatory framework or substantial management experience — and that’s where the real risk lies,” he added.
Laying the Groundwork for Regulation
To tackle these concerns head-on, Bui Hoang Hai, Vice Chairman of the State Securities Commission, shared that the Ministry has drafted a resolution designed to pilot the digital asset market in Vietnam. The focus? Building a smart legal environment that fuels innovation without compromising financial security.
The resolution calls for tight collaboration between the Ministry of Finance, the Ministry of Public Security, and the State Bank of Vietnam to manage emerging risks and ensure stability across Vietnam’s financial markets.
Taxation: A Work in Progress
When it comes to taxation, Vietnam already has a broad base — with VAT, Corporate Income Tax, and Personal Income Tax applicable to businesses and individuals alike. But digital assets still sit in a legal grey area.
Officials from the Department of Tax Policy and Management noted that until the law clearly defines what digital assets are and how they’re classified, enforcing tax obligations on these transactions remains challenging.
A clearer legal framework, they say, will pave the way for proper taxation and revenue management in this rapidly evolving space.
Pilot First, Scale Later
The Ministry of Finance believes that this pilot initiative will allow regulators to test the waters before diving in. The plan is to start small, with strict oversight, allowing the government to study the market, protect investors, and prevent illegal activities — all while nurturing innovation.
If successful, Vietnam could join the growing list of countries that are actively building legal frameworks for crypto and blockchain-based assets. The long-term vision? Supporting capital mobilization, enabling digital business growth, and contributing to Vietnam’s broader digital transformation.
In a rapidly digitizing world, Vietnam’s cautious yet progressive approach to digital asset regulation may just be the middle path the region has been waiting for.
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Source: Vietnam Insider