Vietnam is looking to regulate the crypto industry as the government recently commissioned a research group for the purpose. The Vietnamese Ministry of Finance is conducting an in-depth study of cryptocurrencies for regulation purposes. According to ASEAN Briefing, the Vietnamese finance ministry seeks to gather enough data to clearly see how a regulatory process can be made in the country. The research comes when cryptocurrencies are booming globally in terms of popularity, says the announcement.
One million Vietnamese are using cryptocurrencies.
The government believes there are an estimated one million Vietnamese already using cryptocurrencies, and the expectations are bullish, with a 30-fold increase by the end of this decade. Vietnam is also witnessing increasing cashless solutions for payments, such as QR codes, e-wallets, and mobile apps. Such technology adoption was boosted after the Vietnamese government’s pushing via the prime minister since 2017, who was expecting to reduce cash transactions by 90% in 2020. The study will focus on the following topics, centered on the existing legal frameworks in the United States, Japan, and Europe.
Vietnam also sees a rise in crypto scams.
The government’s wishes to regulate the cryptocurrency environment come in hand with concerns among the government about crypto-related crimes, including cyber hacks and scams. The announcement cites the case of Modern Tech, a domestic startup that scammed around $660 million from thousands of Vietnamese through its fake initial coin offerings (ICOs). Therefore, implementing a legal device to manage and handle virtual assets is the current challenge of Vietnam. It would also set boundaries to abusive cryptocurrency transactions, which is the government’s main concern. Currently, Vietnam doesn’t recognize cryptocurrencies as a legal means of payment or a tangible asset. The State Bank of Vietnam labeled bitcoin and other cryptocurrencies as illegal, and people using them for trading purposes could face fines of up to $8,700 and jail time.