At the workshop "Sharing Experiences in Managing and Operating Centralized Cryptocurrency Exchanges" organized by the Vietnam Blockchain Association on March 27, Lieutenant Colonel Duong Duc Hung, Deputy Head of Counter-Terrorism at the Domestic Security Bureau (Ministry of Public Security), cited a Chainalysis report stating that from October 2021 to October 2022, the total value of cryptocurrency flowing into Vietnam was estimated at around 90.8 billion USD.

Of this amount, nearly 1 billion USD is associated with illegal activities such as fraud, money laundering, and other violations. This indicates not only the strong interest of Vietnamese people and businesses in the cryptocurrency market but also reflects the challenges in monitoring and controlling digital money flows.

Vietnam Needs a Clear Legal Framework

Vietnam currently lacks specific laws or decrees to manage cryptocurrencies and related trading platforms. According to Ms. Nguyen Thi Minh Tho, Deputy Director of the Anti-Money Laundering Department (State Bank), developing appropriate legal regulations for digital assets is an urgent requirement for the economy.

Ms. Tho emphasized that many countries worldwide have established cryptocurrency monitoring and management mechanisms, especially measures to prevent money laundering and terrorist financing. Currently, due to the lack of specific regulations, Vietnam remains in a "legal gray area" and is subject to strict oversight from international financial organizations.

Proposed Measures for Managing and Monitoring Cryptocurrency Transactions

To ensure a transparent and safe market, Lieutenant Colonel Duong Duc Hung proposed that Vietnam should quickly issue a comprehensive legal framework that clearly defines the responsibilities of exchanges in customer identity verification (KYC) and reporting suspicious transactions. Additionally, exchanges should apply modern monitoring technologies such as real-time blockchain analysis to detect early signs of abnormal transactions.

Moreover, Mr. Phan Duc Trung, Chairman of the Vietnam Blockchain Association, believes that piloting cryptocurrency exchanges alongside the Digital Industry Law, expected to be passed in May 2025, will be an important step in helping Vietnam build a legal environment aligned with global trends. This will not only ensure market transparency and safety but also support businesses in developing sustainably in the digital financial sector.

Dr. Hoang Van Thuc, Director of the Cryptography Technical Academy, emphasized the necessity of technical standards and regulations for cryptocurrencies, stablecoins, and trading platforms. He suggested developing a set of criteria for assessing information security and confidentiality for cryptocurrency service providers to minimize risks and enhance transparency in Vietnam's digital financial system.