The Vietnamese government will classify digital assets and cryptocurrencies based on their purpose, technology, and other criteria for management purposes.
The Vietnamese government will specifically classify cryptocurrencies for management purposes. Image: CoinDesk
On January 06, 2025, the Standing Committee of the National Assembly held a meeting on the draft Digital Industry Law, clarifying the classification of digital assets in preparation for the application of a specific legal framework.
Specifically, the draft law defines digital assets as "assets as stipulated in the Civil Code, represented in the form of digital data, created, issued, stored, transferred, and authenticated by digital technology in the electronic environment".
Virtual assets are "a type of digital asset that is traded or transferred and can be used for payment or investment purposes". Virtual assets do not include securities, the digital form of fiat currency, and other financial assets as stipulated by law.
Meanwhile, cryptocurrencies are "digital assets created, issued, stored, transferred, and authenticated using Blockchain technology, distributed ledger technology, or similar digital technology".
Thus, the new classification presented above has been adjusted compared to the draft Digital Industry Law discussed in the National Assembly session last November, which recognizes the additional concept of "cryptocurrencies" with the characteristic of having a blockchain technology platform, clearly distinguishing it from digital assets and virtual assets.
Mr. Le Quang Huy, Chairman of the Science and Technology Committee and a representative of the verification agency, commented that digital assets are a new and complex issue, with rapid development and changes. Currently, this type of asset does not have a comprehensive legal framework worldwide, and there are still different views among countries.
Therefore, the Digital Industry Law aims to regulate the framework of concepts and classification of digital assets based on their purpose, technology, and other criteria. In addition, the government is recommended to consider amending the Civil Code, the Law on Electronic Transactions, and the Securities Law to be consistent with the regulations on digital assets in the new draft.
Chairman of the Economic Committee Vu Hong Thanh agreed that this is a complex issue, and there is no unified regulation internationally. Using Bitcoin as an example, Mr. Thanh said the government has asked the Ministry of Justice to build a legal basis for this issue. In reality, people are using Bitcoin for transactions, so the law governing these types of assets needs to be consistent with the provisions of the Anti-Money Laundering Law being drafted.
"There are cases of buying Bitcoin in Vietnam but transacting abroad, exchanging for other currencies. I suggest that the drafting and verification agencies study carefully the scope of adjustment, the extent of the legal framework," said Vu Hong Thanh.
Digital currencies like Bitcoin and Ethereum are considered popular virtual assets worldwide and in Vietnam. However, our country does not yet have a specific definition for this field. The current regulations only mention the concept of pegged digital currencies, which exist in the form of bank prepaid cards and electronic wallets.
In February 2024, the government assigned the Ministry of Finance to research and develop a legal framework to ban or regulate virtual assets and the organizations providing these asset services, to be completed by May 2025. This is to mitigate the risks of money laundering and terrorist financing related to this type of asset.
In October 2024, the Vietnamese government also issued the National Strategy for Applying and Developing Blockchain Technology until 2025, with a vision to 2030, which sets the goal of forming a domestic blockchain infrastructure and making Vietnam a leading country in the region in applying Blockchain technology.
According to a September 2024 report by Chainalysis, Vietnam has been in the top 5 countries with the highest cryptocurrency adoption for 3 consecutive years, with profits in 2023 reaching nearly $1.2 billion.
According to VnExpress
