Vietnam Races to Regulate Cryptocurrency Market as Government Orders Legal Framework Draft

Vietnam Prime Minister Phạm Minh Chính has issued a directive instructing the Ministry of Finance and the State Bank of Vietnam to collaborate and produce a draft legal framework for cryptocurrencies within this month, marking a significant step towards bringing the burgeoning sector under official oversight, Viet Nam News reported on Monday.

The government's commitment is formalized in Resolution No. 27/NQ-CP, mandating the Ministry of Finance to take the lead in developing legal regulations for digital assets, coordinating with relevant agencies and local authorities. Simultaneously, the Ministry of Planning and Investment is seeking public input on a draft resolution proposing the establishment of a regional and international financial center in Vietnam. Crucially, this draft resolution includes provisions for a regulatory "sandbox" environment specifically designed for fintech innovations, encompassing crypto assets and cryptocurrencies. According to the draft, this financial center would have the authority to license, manage, and assess risks associated with fintech activities, including cryptocurrency exchanges, with transactions within the sandbox potentially commencing as early as July 1, 2026.

Further emphasizing the growing recognition of digital assets, the Ministry of Information and Communications' draft Law on Digital Technology Industry introduces the formal concept of "digital assets" into Vietnamese legislation for the first time. The draft proposes defining digital assets as a distinct category of digital technology products, assigning the Ministry of Finance to spearhead the development of comprehensive regulations for managing these assets and their service providers.

This move comes as Vietnam consistently ranks among global leaders in cryptocurrency adoption. In 2021 and 2022, the nation stood within the top three worldwide for cryptocurrency ownership, with an estimated 21% of the population holding digital assets. Recent data from blockchain analytics firm Chainalysis further underscores Vietnam's crypto prominence, ranking it fifth globally in interest in digital assets, third in usage of international trading platforms, and sixth in decentralized exchange trading volume. Chainalysis estimates that approximately 17 million Vietnamese citizens currently hold digital assets, with a total market value exceeding a staggering $100 billion.

Trần Huyền Dinh, chairman of the Vietnam Blockchain Association's Digital Assets - Fintech Committee, emphasized the significant tax revenue potential, estimating that even a modest 0.1% personal income tax on digital asset transactions, similar to securities, could generate over $800 million annually for the state. He further noted the economic advantages of regulated trading platforms, including transaction fees and enhanced market monitoring and investor protection. "A clear legal framework is needed to ensure the rights of users in digital asset transactions, from KYC to personal data protection and dispute resolution," Dinh said, Viet Nam News reported .

With the Prime Minister's mandate and broad industry consensus, Vietnam appears poised to join the growing number of nations establishing clear legal guidelines for the digital asset space.