Vietnam announces plans to develop a legal framework for cryptocurrency regulation by May 2025 to address ownership risks and prevent illegal activities such as money laundering.
- Cryptocurrencies are not banned in Vietnam, but regulation is urgently needed.
- The Finance Ministry has been tasked to draft a regulatory framework by May 2025.
- Measures against misuse, like money laundering, are also being studied.
Urgent Need for Legal Framework
A Vietnam government official has clarified that cryptocurrencies are not prohibited in the country, but there is a critical need to establish a legal framework to regulate them.
Cao Dang Dinh, deputy head of the Civil Law Department at the Ministry of Justice, highlighted the urgency of this task.
The Finance Ministry is set to draft this framework, aiming for completion by May 2025.
Efforts Against Financial Misuse
As reported by VN Express, along with developing a legal plan, Vietnam’s central bank is looking into ways to stop using cryptocurrencies for illegal activities such as money laundering.
This action highlights how the government is working to reduce the dangers linked with digital currencies.
Historical Context and Future Directions
Vietnam ranks high globally in terms of cryptocurrency ownership among its residents.
According to Dinh’s statement, this widespread use highlights the need for strong legal rules because big risks could be taken advantage of without them.
Back in 2021, the Vietnamese Finance Ministry conducted several studies, indicating the need for new laws to manage the growing areas of the financial sector, including fostering educational initiatives about cryptocurrencies.
They also examine ways to help regulators better monitor licenses and track suspicious financial activities.
