Vietnam is taking a significant step toward regulating digital assets with plans to establish a legal framework for cryptocurrencies. The country’s Ministry of Finance will propose these regulations this month, including a pilot program for a state-licensed digital currency exchange. Deputy Minister Nguyen Duc Chi announced this initiative at a recent government press conference, as reported by local media.

This move aligns with Prime Minister Pham Minh Chinh’s call for clear guidelines on managing digital assets. The Ministry of Finance and the State Bank of Vietnam are working together to create a balanced approach that fosters innovation while ensuring investor protection. The proposed exchange will allow individuals and businesses to trade digital assets under government supervision, reducing risks and providing legal security.

Vietnam currently lacks formal definitions and regulations for digital assets and cryptocurrencies. Many blockchain businesses have chosen to register abroad due to this regulatory uncertainty. The absence of clear policies has led to missed tax revenue and limited market oversight.

The government is also exploring rules that could allow Vietnamese enterprises to issue virtual assets as a means of financial mobilization. With the country ranking among the top three globally in digital asset ownership and recording $120 billion in crypto inflows in 2023, these regulations could help harness the sector’s potential while mitigating risks.

By introducing this framework, Vietnam aims to provide clarity to businesses and investors, ensuring that the fast-growing digital asset sector operates within a structured and secure environment.