The Ministry of Finance has officially withdrawn its proposal to allow small and medium-sized enterprises (SMEs) to use digital and virtual assets as collateral in Capital transactions, according to a summary report on the acceptance and explanation of comments on the draft Law on Supporting Small and Medium-sized Enterprises that has just been published.
From proposed expansion to decision to withdraw.
Previously, the Ministry of Finance had adopted a rather open approach by proposing to expand the list of collateral assets for SME Capital , including intellectual property rights, future assets, intangible assets, and especially digital and virtual assets. This was XEM as a step to remove the bottleneck in accessing Capital for businesses that do not have tangible assets to use as collateral in the traditional way.
However, after extensive consultation, the Ministry decided to completely remove the content related to these two types of assets from the draft, and they will not be included in this revised version.
Locals are concerned, from legal issues to valuation.
The dissenting opinions came from various local finance departments, each with a different perspective but sharing a common concern.
The Da Nang Department of Finance emphasized the need for a comprehensive impact assessment before incorporating digital assets into credit collateral transactions. In Gia Lai, authorities proposed separating the concepts of "virtual assets" and "digital assets," only XEM those that can be valued according to specialized legal regulations. The Nghe An Department of Finance shared this view, stating that the concept of virtual assets lacks a specific legal definition and needs to be replaced or clarified before being legalized. Quang Ngai suggested that if this regulation is retained, a complete set of valuation principles, management mechanisms, and accountability for all relevant parties should be established.
Two unsolved problems
Overall, the concerns of the authorities focus on two key points. First, the legal framework: the ownership of digital assets, dispute resolution mechanisms, and procedures for handling assets when borrowers become insolvent are not clearly defined in current law. Second, valuation: unlike real estate or tangible assets, the value of digital assets can fluctuate sharply in a very short time, while there is no unified valuation standard that credit institutions can rely on to control risk.
Be cautious before you step in.
The decision to withdraw the proposal reflects a priority approach to building a solid legal framework before expanding the application of digital assets into the credit system. Discussions about the Vai of digital assets in the economy are ongoing as Vietnam gradually refines its legal framework for this market.
