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Vietnam’s Prime Minister instructs key financial institutions to create a cryptocurrency legal framework, aiming to regulate digital assets and secure economic growth.
Data indicates Vietnam ranks among the top three in crypto ownership, with 21 percent participation and US$120 billion in digital asset inflows in 2023.
Authorities assign the Finance Ministry, State Bank, and Science and Technology Ministry to draft crypto policies, further enhancing regulation and supporting economic development.
Vietnam’s Prime Minister Pham Minh Chinh has ordered key ministries to draft a legal framework for cryptocurrencies within this month. The directive aims to regulate digital assets, address existing gaps, and support economic development in the country.
Government Directive on Digital Asset Regulation
The Prime Minister instructed the Ministry of Finance and the State Bank to draft clear cryptocurrency regulations within this month. The order expects cooperation across ministries to create effective policy measures.
A recent tweet from Wu Blockchain confirmed the directive on Saturday. The tweet stated that Vietnam aims to regulate digital assets promptly.
https://twitter.com/WuBlockchain/status/1896752555105161251
Authorities must complete the framework within this month to align with the fast-growing digital asset market. The new regulations may encourage local business registrations.
Addressing Regulatory Gaps and Market Dynamics
Vietnam has not yet defined digital currencies such as Bitcoin and Ethereum in its legal system. Existing regulations address only electronic money tied to fiat currency through bank prepaid cards and wallets.
Many businesses register in Singapore or the United States and operate in Vietnam instead. This trend results in a loss of competitive advantage and reduced tax revenue.
Data from the Vietnam Blockchain Association shows that 21 percent of the population owns digital assets. The ranking places Vietnam among the top three countries globally.
Economic Measures and Broader Financial Strategies
The Prime Minister also ordered a study on housing credit packages for citizens under 35. The directive instructs the State Bank to monitor commercial banks’ interest rate policies.
Vietnam recorded a US$120 billion inflow of digital assets in 2023, according to Chainalysis. The government has also tasked the Ministry of Science and Technology with drafting policies by the second quarter.
The central bank will review commercial banks’ lending conditions to maintain competitive loan rates. This review supports steady economic growth in a volatile market.
Market analysts observe that regulatory clarity can improve investor confidence. The move may stabilize digital asset flows and support economic growth in challenging market conditions.
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