Crypto asset sandbox to foster innovation, protect consumers: official

The widespread popularity of cryptocurrencies worldwide has created an urgent need for a legal framework in Vietnam, which may include the piloting of a sandbox mechanism, said Bui Hoang Hai, vice chairman of the State Securities Commission (SSC).

Could you share some information on the development of a resolution on piloting cryptocurrency exchanges, and what are the main goals?

On March 3, 2025, Prime Minister Pham Minh Chinh chaired a meeting of the government’s Standing Committee to discuss finalizing the legal framework for managing and regulating virtual assets, cryptocurrencies, and crypto assets.

The committee assigned the Ministry of Finance to coordinate with relevant ministries and agencies to draft a government resolution. This resolution aims to promote the research and development of new technologies, encourage innovation, and foster economic growth in Vietnam, aligning with global trends and the country’s specific conditions.

Based on the Prime Minister’s Dispatch No. 22/CĐ-TTg, dated March 9, 2025, and Notice No. 81/TB-VPCP from the Government Office on March 6, 2025, the finance ministry submitted Proposal No. 64/TTr-BTC on March 11, 2025 to the government on a draft resolution to pilot the issuance and trading of crypto assets.

What benefits will the sandbox mechanism bring to the development of the legal framework for managing crypto assets?

The issuance and trading of crypto assets are growing rapidly in terms of volume, transaction value, and complexity. The global adoption of crypto assets presents both opportunities and challenges, as well as risks to the stability of the financial system and economic development. Many regulators worldwide are working to establish legal frameworks to manage this market.

In this context, piloting a crypto asset market is suitable for Vietnam’s current situation, as it offers a flexible legal environment that can quickly adapt to innovation within the framework of state management and oversight. This will help mobilize capital for business development, promote the digital economy, and stimulate economic growth.

Piloting a crypto asset market on a limited scale, under the supervision of state agencies, will meet market demands while allowing regulators time to develop policies suited to the actual situation.

This approach is consistent with practices in many other countries. The crypto asset market is continuously evolving, becoming more diverse and complex, presenting significant risks to investors and the financial market.

Therefore, the piloting enables regulators to carefully study and assess the feasibility and practical conditions for implementation, minimize illegal activities such as money laundering and terrorist financing, protect investors, and lay the foundation for developing a transparent, safe, and sustainable financial market.

How should regulators collaborate to ensure that new policies on crypto assets not only protect consumers but also promote innovation?

Crypto asset activities are increasingly vibrant and diverse, attracting a large number of participants and posing significant risks that could affect monetary policies, trade, and security in several countries, including Vietnam.

In this context, the government has set the task of creating a regulatory framework for crypto assets that strikes a balance between encouraging research and development of new technologies; fostering innovation; and ensuring effectiveness, transparency, fairness, and alignment with Vietnam's specific circumstances.

The government has tasked the finance ministry with developing a resolution on piloting the crypto asset market in Vietnam, aiming to create a legal environment that supports innovative activities related to crypto assets while minimizing negative impacts on the socio-economic landscape.

The ministry has submitted the draft resolution to the government, proposing a mechanism for collaboration between regulators such as the finance ministry, the Ministry of Public Security, and the State Bank of Vietnam. This cooperation would promote market activities while minimizing financial security risks and ensuring the stability of the financial and monetary markets.

Vietnam's Party chief To Lam last month emphasized the need to study the application of a sandbox mechanism to establish an exchange for digital assets.

During a recent working session with the Party Central Committee’s Commission for Policies and Strategies on economic growth goals, Lam said cryptocurrencies such as Bitcoin and Ethereum are considered popular virtual assets.

However, Vietnam currently lacks a specific definition for virtual currencies and assets, he stated, noting that the current regulations only mention digital money, which is pegged to fiat currency and exists in the form of prepaid bank cards or e-wallets.

According to Lam, the National Assembly - the country's legislature and government agencies need to quickly institutionalize and specify regulations to manage this field. They should study the application of a sandbox mechanism to establish a digital asset exchange.