Vietnam Prepares to Analyze Legal Framework for Bitcoin

The Vietnamese government prepares to analyze bitcoin and cryptocurrency. They may provide a regulatory framework for them in the near future. The prime minister Nguyễn Xuân Phúc just approved a plan to delve into these digital assets and consider legalizing them. Digital currencies could be acceptable and legal sooner rather than later in Vietnam.

The prime minster encouraged the Ministry of Justice to work with other institutions to determine how cryptocurrencies like bitcoin can be integrated into society. A Vietnam news article elaborated:

“The PM has asked the Ministry of Justice to preside and co-ordinate with other relevant ministries and institutions, including the State Bank of Việt Nam, Ministry of Information and Communications, Ministry of Public Security, Ministry of Industry and Trade and Ministry of Finance, to scrutinise the current legal framework, provide a comprehensive assessment and propose suitable solutions and revisions in the framework to the Government.”

Due Date for the Assessment and Finalization

The Vietnam news article mentions the ministry must complete the assessment for legalization prior to August 2018. All legal documents and other information on the currencies should be prepared and submitted by end of the year.

Furthermore, the ministry must finalize a document by June 2019 that would provide a legal framework for cryptocurrency taxes. Then by September, ideas about how to handle violations of cryptocurrency use must be ready.

The article said, “The ministries will also have to finalise an application asking for the compilation of a legal framework on taxes for cryptocurrencies by June 2019. By September of the same year, proposals for prevention and handling of violations related to these currencies must be in place.”

Protecting Vietnamese and Foreign Investors

The final concern listed in the article regards investors. Vietnamese regulators appear to want to write legislation to protect investors from fraud and other sketchy activities. This move will also help defend property rights and make sure cryptocurrency transactions are fair and equal within the context of Vietnamese legal regulations.

It is expected that once the legal framework for the currencies is finalised, bitcoin and several other cryptocurrencies will be officially recognised in Việt Nam, opening up possibilities in financial technology and online payments

Past Considerations on Cryptocurrency Regulations in Vietnam

In the past, covered a story about Vietnamese politicians issuing warnings about bitcoin and other cryptocurrencies. In June 2016, Jamie Redman mentioned how Vietnam’s head Ministry of Public Security’s high-tech crime prevention office, Nguyen Thi Thu Hang, was concerned about fraudulent activity in the space. She specifically warned about companies promising impossible returns or investment (ROI), which were indicative of rampant pyramid schemes.

It is likely these earlier fears of fraud have metamorphosed into the current analysis for cryptocurrency legislation in Vietnam. This new cryptocurrency scrutiny also coincides with the rising price of bitcoin and greater adoption worldwide.