Vietnam is set to introduce a digital asset legal framework this year as the country’s ruling party pushes for adoption.
The push is led by Prime Minister Phạm Minh Chính, who called on the country to capitalize on blockchain and digital assets to achieve its ambitious national gross domestic product (GDP) growth rate target for 2025. Chính called on the Finance Ministry and the country’s central bank to submit the new proposals by the end of March.
The premier’s order was followed up by the ruling Communist Party of Vietnam; during a recent session of its Commission for Policies and Strategies, the party reiterated the need for digital asset regulations, local outlets report.
The party’s general secretary, Tô Lâm, stated that the lack of a comprehensive framework has limited the growth of digital assets in the Southeast Asian nation. He called on the legislature to formulate new laws for the sector and for regulators to set up a sandbox for virtual asset service providers (VASPs).
“Policies need to be in place to ensure that Vietnam does not fall behind, miss opportunities, or create a gap with new financial models and modern trading methods,” Lâm noted.
Despite the lack of formal regulations, Vietnam has been one of the world’s leading digital asset markets. Chainalysis ranked it fifth in adoption globally last year and third the year prior. A study by Triple-A found that 21% of Vietnamese residents own digital assets, with only the United Arab Emirates ranking above it. Additionally, the country received $105 billion in digital assets last year.
This lack of regulations may have even worked in favor of Vietnam, says the Crypto Council for Innovation, a global digital asset lobby group. In a 2023 report, the Council argued that with little regulation for the sector, digital asset gains remain untaxed, making them attractive assets for local investors.
Vietnam’s digital asset sector has called for regulations for years. However, some believe a new framework would initially suppress adoption before laying the foundation for long-term growth.
Bitget managing director Grace Chen told one outlet that new regulations in Vietnam would “lead to a short-term impact on local fiat exchange trading, but in the longer term, clear regulation may encourage broader adoption and lay the groundwork for increased retail and institutional engagement.”
Besides boosting adoption, digital asset innovators believe the new framework will also boost government revenues. They say several VASPs, led by Singapore, have had to register in neighboring countries and then serve the Vietnamese market. These businesses will set up operations in the country and remit millions of dollars in taxes.
“Creating this legal framework will help businesses access bank capital and provide a safer, more transparent environment for crypto transactions,” a representative of the Finance Ministry commented.
Trần Huyền Dinh, who heads the fintech committee under the Vietnam Blockchain Association, says that imposing a 0.1% personal income tax on digital assets would generate over $800 million in taxes from the sector annually.
Additionally, formal regulations will allow Vietnamese VASPs to access banking services and raise funding, further expanding the country’s burgeoning digital asset sector.
Colombia’s new bill targets digital asset regulations
In South America, Colombian lawmakers are pushing a new bill to regulate the digital asset sector. Senator Gustavo Moreno and his House of Representative counterpart Julian Lopez submitted the bill to Congress this week, reports the local paper El Colombiano.
Despite rapid adoption, digital assets exist in legal ambiguity in Colombia, which creates an uncertain and risky environment for investors, Senator Moreno told legislators while presenting the bill.
His bill aims to remedy this by introducing 16 articles that cater to licensing and Know Your Customer (KYC), taxation, prevention of money laundering and terrorism financing, education and awareness, and promotion and advertising.
“Colombia has fallen in the global ranking of cryptocurrency adoption. While other countries are moving forward, here we remain unregulated,” Representative López stated while presenting the bill. “This [bill] seeks to have clear rules of the game to generate a reliable and more attractive ecosystem for investment with guarantees for this emerging industry.”
Some studies have found that over five million Colombians own digital assets. Last year alone, they transacted nearly $7 billion, but the country ranks below regional heavyweights like Brazil, Venezuela, Mexico, and Argentina in Latin America.
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