The number of investors in cryptocurrencies such as Bitcoin has been increasing in Vietnam recently. (Photo: AFP/VNA)Recently,investment in cryptocurrencies such as Bitcoin, Pi Network, Ripple, BitcoinCash and Litecoin has increased in Vietnam. It is estimated 1 millionVietnamese are already trading cryptocurrencies and the number is expected toincrease 30 times by 2030.
At present,Vietnamese law does not mention cryptocurrencies as a legal means of payment,and neither does it recognise them as an asset or a foreign currency.Possessing, trading, and investing in cryptocurrencies therefore is not legalin Vietnam.
Financeexpert Nguyen Tri Hieu told Vietnam News thereare currently no regulations about the issuance, trading and exchange ofvirtual assets and cryptocurrencies nor regulations on an agency to managevirtual assets. Thus, the trading and exchange of cryptocurrencies viainternational platforms such as Binance, Coinbase Okex, Houbi, Bittrex,Remitano, Santienao and Kenniex or through direct agreements carry a lot ofrisks.
It was veryeasy for those who buy and sell virtual currencies online to become victims ofscammers, Hieu said, warning that the investors would not be protected by law.
Managementagencies and experts have repeatedly warned investors over cryptocurrencies.Deputy Governor of the State Bank of Vietnam (SBV) Dao Minh Tu said undercurrent regulations, Bitcoin and other similar virtual currencies were notlegal means of payment in Vietnam.
The Ministryof Finance (MoF) said the trading and exchange of cryptocurrencies viaplatforms such as Binance and Coinbase or through direct agreements carry a lotof risks.
The StateSecurities Commission last month advised people to be cautious when investingin virtual assets and currencies while asking public companies, securitiescompanies, fund management companies and investment funds not to conduct theillegal issuance, trading or brokerage of virtual currencies.
Despite thewarnings, investors still flock to cryptocurrency due to the offers of highprofits. Therefore, experts have urged the Government to rapidly fill the legalgap in cryptocurrency management to minimise the drawbacks arising from theinvestment channel.
According tolawyer Nguyen Thanh Ha, Chairman of SBLAWS Law Firm, there is a huge legal gapin cryptocurrency management. Currently, the SBV is the only management agencyto have issued a written document confirming digital currency is not anaccepted payment instrument in Vietnam while some other agencies such as theMoF and the Ministry of Public Security have just warned of the risks wheninvesting in cryptocurrencies.
It was verydifficult to handle issues that might arise when investors trade cryptocurrencyas there are no official legal prohibitions or guidelines related to this typeof asset, Ha said.
Expert Can VanLuc said management agencies should research and create a legal framework forofficial digital currencies and business models in the new electronic financialenvironment such as e-wallets and fintech.
At the sametime, it was necessary to complete the national identity database with a focuson upgrading information technology infrastructure and network security toprotect the interests of consumers and financial institutions, Luc said.
Currently, ministriesand agencies including the SBV, the MoF and the Ministry of Justice are workingto implement the Prime Minister’s Decision No1255/QD-TTg on the project of completingthe legal framework to manage virtual assets, digital currencies andcryptocurrencies.
The MoFhas set up a research group, which began an in-depth study ofcryptocurrencies, aiming towards legislative reform for the industry in thenear term. The group is studying laws already enacted by the US, the EU andJapan related to the issue.
Before theissuance of asset-related legal regulations, the ministry will continueto raise people's awareness about virtual assets and cryptocurrencies aswell as warn about their risks.
The centralbank also directs credit institutions and payment intermediaries to regularlywarn users about the trading and use of such assets.
According toexperts, the issue of legal regulations on managing virtual assets and cryptocurrenciesmight have long-term public, social and economic benefits as the trading of theassets without legal regulations as done currently can cause losses of Statebudget revenue, foreign currency shortage, or cross-border money laundering.
According toexperts, cryptocurrency management will provide an opportunity for Vietnam tomake additional revenue by taxing cryptocurrency trading. By defining themas exchanges of foreign currencies or financial assets, such exchanges,previously tax-free, may fall within the scope of corporate or personal incometax.
In addition,regulating cryptocurrencies in the country should effectively fight fraud andabuses related to virtual currencies, such as money laundering, hacking, orthe anonymous financing of illegal activities./.
VNA
