Vietnam to Establish Legal Framework for Digital Assets by March 2024

Vietnam is set to introduce a legal framework for digital assets by the end of March 2024, aiming to boost economic growth. Prime Minister Phạm Minh Chính's Directive No. 05 targets an 8% or higher national growth by 2025. The Ministry of Finance (MOF) and the State Bank of Vietnam (SBV) are tasked with finalizing crypto regulations. Currently, crypto transactions operate in a legal gray area, leading businesses to register overseas, causing lost tax revenues. Vietnam ranks fifth globally in crypto adoption, with over $105 billion in blockchain investments during 2023-24. The new framework seeks to provide a secure environment for crypto businesses. Neighboring hubs like Singapore and Hong Kong have already established comprehensive crypto regulations, with Singapore granting 13 digital asset licenses in 2024 and Hong Kong licensing 10 virtual asset trading platforms.