Vietnamese Government Working On Crypto Regulatory Framework

• Vietnam’s Deputy Prime Minister has ordered multiple state agencies to work on a crypto regulatory framework for the country.
• The order builds on existing research into both crypto regulation and the development of a CBDC.
• Global crypto regulation continues; as a result, O’Leary believes there will be no more crypto winter.

A local Vietnamese news platform report reveals that Vietnam’s Deputy Prime Minister Le Minh Khai has urged state agencies to create a regulatory framework for the developing digital asset market. The effort would build on work done towards regulation in 2017.

A Joint Effort

According to a report by VietNam Net Global, Deputy Prime Minister Le Minh Khai, in a notice dated last week Wednesday, has instructed the Ministry of Finance to lead a committee to update legal provisions, come up with new proposals, and also come up with a time frame of implementation for said proposals to create an effective regulatory framework for the crypto space. The effort will build upon efforts directed by the Prime Minister in 2017, known as Decision 1255.

As reported by the news outlet, the effort would also involve participation from the Ministries of Justice, Information & Communication, and the State Bank of Vietnam. The research is to define the nature of digital assets, the stance of the law on these assets, how they are used within the country’s borders and outside, and how they affect the central bank-issued currency.

During the research, the group is also supposed to define the roles of various state agencies in regulating the market. The resolutions are expected to tackle risks associated with blockchain technology while still encouraging innovation in the country.

The recent directive, as stated earlier, builds on Decision 1255 issued by Prime Minister Nguyen Xuan Phuc in 2017 to create a regulatory framework for cryptocurrencies. It also adds to a 2021 directive given to the State Bank of Vietnam to research the development of a CBDC using blockchain technology.

Notably, Vietnam had banned cryptocurrencies as a means of exchange for goods and services in 2017. However, crypto trading and investments in the country have been allowed to continue without restrictions with massive adoption by the people of Vietnam.

Global Regulations And Kevin O’Leary’s Thoughts

Vietnam now becomes the latest to join the race to develop a crypto regulatory framework. Deputy Prime Minister Le Minh Khai’s notice bears many similarities with Biden’s executive order on cryptocurrencies.

Each seeks to foster a collaborative effort between federal agencies to solve the issue of crypto regulations. An effort several pundits have applauded as the first step to ensuring increased institutional participation in the developing market.

Kevin O’Leary, aka Mr. Wonderful, has celebrated the rise of policies and regulations around the crypto market and says there will not be another crypto winter. O’Leary said this in a LinkedIn post when commenting on the increased rate of bipartisan collaboration on crypto policies.

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