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Highlight:
- Ministry of Planning and Investment proposes testing fintech activities, including digital asset and cryptocurrency trading, at financial centres.
- Financial centres in HCM City and Đà Nẵng expected to be operational by 2025.
- New proposal aims to position Việt Nam as a competitive financial hub, addressing cryptocurrency regulation gaps.
The Ministry of Planning and Investment (MPI) has proposed a controlled pilot program for fintech activities, including digital asset and cryptocurrency trades, at financial centres in Việt Nam. This initiative is part of a broader plan to establish regional and international financial centres within the country, positioning Việt Nam as a significant financial hub.
Fintech Sandbox for Cryptocurrency and Digital Assets
In its draft proposal for a National Assembly Resolution, the MPI has outlined a sandbox approach for testing business models that integrate technology into the financial sector, including platforms for trading digital and cryptocurrency assets. The proposal includes the creation of a Financial Centre Management and Operations Committee, responsible for issuing licenses, managing operations, and evaluating the impact of these trials on the market.
Regulations for Digital Asset Security and Compliance
To ensure security and uphold standards, the Government plans to implement detailed regulations covering measures to prevent money laundering, cybersecurity protocols, and the overall safety of digital asset service providers. The regulations will also encompass the management, issuance, ownership, and trading of NFTs, utility tokens, and cryptocurrency mining, addressing concerns related to energy security and environmental impact.
Positioning Việt Nam as a Financial Hub
The Government’s plan also includes the establishment of international financial centres in HCM City and Đà Nẵng by 2025. These centres are set to enhance Việt Nam’s integration into the global financial system and boost its role as a competitive financial hub in the region. The proposal acknowledges the growing global cryptocurrency market, which recently peaked at nearly $3.3 trillion, and Việt Nam's strong cryptocurrency ownership rate.
Legal Framework for Cryptocurrency
Currently, Việt Nam lacks a comprehensive legal framework for cryptocurrencies and digital assets, creating challenges for fully embracing these technologies. While cryptocurrencies are not banned, they are not recognized as assets under Vietnamese law. This has prompted businesses to register in countries like Singapore or the US, resulting in a competitive disadvantage for Việt Nam and a loss of potential tax revenues. The Government aims to address these regulatory gaps to attract more fintech businesses to the country.
