Vietnam should develop clear legal framework for digital assets: exec

The Vietnamese government should develop a clear and transparent legal framework for the development of digital assets, paving the way for the country to become a regional hub in this field, an executive suggested.

Despite Vietnam’s tech-savvy and youthful population, blockchain and digital asset firms currently operate without clear regulatory guidance. This has caused them to lose competitive advantages to neighboring countries such as Singapore and Thailand, said Nguyen Duy Hung, chairman of leading brokerage SSI Securities.

This regulatory void not only exposes investors to potential fraud but also leads to missed opportunities, as foreign investors and major technology corporations prefer countries with more robust and supportive legal environments, Hung told the Vietnam Tech Impact Summit 2024, which commenced on Tuesday in Hanoi.

Therefore, establishing a legal framework for digital assets in Vietnam is essential not only for businesses but also for advancing the technology sector and the broader economy, the executive noted.

Hung also urged the government to encourage businesses in blockchain and digital technology by offering investment incentives, funding for research, and opportunities for international collaboration.

He highlighted the need to develop effective management systems that protect users while fostering innovation. He also proposed strengthening international cooperation to create a legal framework tailored to Vietnam’s conditions.

Vietnam ranks second in the world of cryptocurrency ownership, with 21.2% of the population adopting crypto, according to data from crypto payment gateway Triple-A.

Data by Chainalysis shows that up to $120 billion worth of cryptocurrencies flowed into Vietnam during the first half of 2023.

Vietnamese investors earned $1.18 billion in profits last year, ranking the country among the top five Asian markets with the highest cryptocurrency investment returns, following China, Indonesia, India, and South Korea, said the U.S. blockchain analysis firm.