Vietnam Government Declares Urgent Need for Crypto Regulations

The Prime Minister said he has been communicating with Vietnam’s money laundering legal agency VnExpress reported. The country’s local newspaper revealed that Chinh made this new move in a discussion group.

The Needs for Crypto Regulation

Vietnam Prime Minister Pham Minh Chinh on October 24 expressed his concern over crypto regulation. The vast risks and losses the Vietnamese recently incurred raised his concern. He said residents continued to trade crypto despite its lack of constitutional recognition.

The Prime Minister’s speech opined the Vietnamese government would indeed have crypto regulation. This urgent need arose as a result of the role crypto plays in financial crimes in the country.

“It is essential to study the right sanctions and hand them over to the government. Lawmakers and other officials will use it to formulate restrictions on crypto trading.” The Prime Minister made this known in a chat with VnExpress News.

The Vietnamese government prohibits using cryptocurrencies as a medium of exchange in the country. However, they permitted tokens to stay in seemingly constitutional gray areas as investments.

Chainalysis‘s formal statement released in September revealed that the Vietnamese had a very high crypto purchasing power. The country was ranked above all other countries in 2022 and 2021 in Crypto adoption. The country’s residents adopted DeFi, Peer to Peer (P2P), Centralized Exchanges, and other crypto gadgets.

Vietnam National Assembly Reaction

Some Vietnam lawmakers have suggested that the government adopt cryptocurrency and other blockchain-based assets. The suggestion encouraged many Vietnamese to venture into crypto trading without considering the risk involved.

Deputy Prime Minister Le Minh Khai tasked the Ministry of Finance to study crypto laws. However, they should also suggest ways of amending the country’s cryptocurrency laws. A framework for crypto adoption should also be formulated.

The above instruction was in accordance with the initiative published by the prime minister in July 2021. He directed the State Bank of Vietnam to study and develop plans for digital assets.  

The above initiative was of the Prime Minister’s broader e-government development techniques. Pham Minh Chinh encouraged Vietnamese government officials to embrace blockchain technology for numerous products. Ban was placed on giving credit facilities to crypto investors.

University of Economics Ho Chi Minh City (UEH) revealed cashless transactions increased recently in the country. Vietnam‘s government was advised to embrace crypto and its benefits, but they must tread cautiously. The institute said that “Digital funds is an unavoidable trend in the world.” 

The Vietnam National Assembly will deliberate on the Assets Management Law (AML) bill on November 1, 2022. The bill may be passed into law or rejected on November 15 is their fourth session. However, Vietnam’s Ministry of Finance will not be left behind.

The Prime Minister’s concern has been sparked by the current bearish market in the crypto industry. There is high hope of recovery for crypto traders in the year’s remaining months. 

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