Finance ministry studies legal framework for cryptocurrencies
The Ministry of Finance is studying the legal framework for managing cryptocurrencies on stock exchanges which would pave the way for legal cryptocurrency transactions in Vietnam.
The Ministry of Finance is studying legal framework for the management on cryptocurrencies on stock exchanges. — File Photo
The ministry said on Tuesday a research group in charge of studying virtual assets and currencies had been set up and started to study and develop the legal framework for the management of cryptocurrencies.
The establishment of the research group aims to implement the Prime Minister’s Decision No 1255/QĐ-TTg approving the project of completing the legal framework to manage virtual assets, digital currencies and cryptocurrencies and the Government Office’s requirement to review and evaluate the situation of cryptocurrency use in Vietnam.
Currently, there are no regulations about the issuance, trading and exchange of virtual assets and cryptocurrencies nor regulations on an official agency to manage virtual assets. Thus, the trading and exchange of cryptocurrencies via platforms such as Binance and Coinbase or through direct agreements carry a lot of risks, the ministry said.
Management agencies have repeatedly warned investors over cryptocurrencies. Recently, the State Securities Commission advised investors to be cautious when investing in virtual assets and currencies while asking public companies, securities companies, fund management companies and investment funds not to conduct the illegal issuance, trading and brokerage of virtual currencies.
The ministry said it would promote the research to propose a mechanism to manage activities related to virtual assets and currencies to promote creativity and economic growth and at the same time ensure safety and security for the financial market and protect the rights and interests of investors as well as other market participants.
In addition, the ministry will enhance communication to raise awareness of virtual assets and cryptocurrencies and provide warnings about risks that might arise without regulation.
Deputy Governor of the State Bank of Vietnam Dao Minh Tu previously said under the current regulations, bitcoin and other similar virtual currencies were not legal means of payment in Vietnam.
Vietnam ranks second in terms of cryptocurrency use, driven by remittance payments, according to a recent survey by a global provider of market and consumer data Statista.