According to the draft Law on Digital Technology Industry, the Vietnamese government will classify digital assets and cryptocurrencies based on their intended use, technology, along with other criteria, in order to build an appropriate management framework.
On the morning of January 6, the Standing Committee of the National Assembly held a discussion session on the Law on Digital Technology Industry, in which a definition of digital assets was provided as a type of asset regulated in the Civil Code, expressed in the form of digital data and can be created, issued, stored, transferred, and verified through digital technology in an electronic environment.
According to the draft, virtual assets are a type of digital asset that can be traded or transferred, which can be used for payment or investment purposes. However, virtual assets do not include securities, fiat currencies in digital form, or other financial assets regulated by current laws.
On the other hand, cryptocurrency is defined as a digital asset created, issued, stored, transferred, and verified using blockchain technology, distributed ledger technology (DLT), or similar digital technologies.
Legal framework for digital assets: Needs investment in research and thorough review.
Mr. Le Quang Huy, Chairman of the Committee on Science, Technology and Environment of the National Assembly, representing the agency verifying the draft law, believes that digital assets are a new and complex field that is developing rapidly. Currently, there is still no complete legal framework in the world to manage this type of asset, and opinions on this issue are still quite diverse.
Le Quang Huy – Chairman of the Committee on Science and Technology.
Therefore, the draft Law on Digital Technology Industry aims to build a legal framework for the concept and classification of digital assets based on their intended use, technology, and other factors. The government will be responsible for detailing regulations on classification, authority, and management content of digital assets as well as related services, ensuring alignment with the realities and conditions of Vietnam.
In addition, there are opinions suggesting that it is necessary to consider amending the Civil Code, the Electronic Transactions Law, and the Securities Law to adjust the regulations on digital assets to align with the definitions in the draft Law on Digital Technology Industry. However, according to the assessment of the Committee on Science, Technology and Environment, the regulations on digital assets in the draft have been revised and updated so as not to create overlap or conflict with current regulations, thus it is not necessary to amend the above laws.
Management of digital assets: Needs to align with international practices and anti-money laundering laws.
Mr. Vu Hong Thanh, Chairman of the Committee on Economics of the National Assembly, agrees with the assertion that digital assets are a complex issue and there are no unified regulations globally. He provided the example of Bitcoin, a popular virtual asset today, for which the Vietnamese government has requested the Ministry of Justice to establish a legal basis for management. Nevertheless, Vietnamese people currently still use Bitcoin for transactions, and therefore, he emphasized that the management of digital assets must comply with current regulations in the draft Anti-Money Laundering Law.
Next steps and legal framework for virtual assets.
Currently, cryptocurrencies like Bitcoin, Ethereum... have become popular virtual assets, however, Vietnam still does not have an official legal definition for this type of asset. Current regulations only mention electronic currencies, but mainly within the framework of fiat currencies in the form of bank cards or e-wallets.
In February 2024, the government assigned the Ministry of Finance to research and build a legal framework to regulate or prohibit virtual assets and related service providers, aiming for completion by May 2024. This is to limit risks such as money laundering and terrorist financing related to virtual asset transactions.
Current state of virtual asset transactions in Vietnam.
According to data from the Vietnam Blockchain Association (VBA), from October 2021 to October 2022, the total value of virtual asset transactions in Vietnam reached about 91 billion USD, of which about 956 million USD was related to illegal activities. These figures clearly reflect the importance of building and enforcing comprehensive legal regulations on digital assets and virtual assets.
The draft Law on Digital Technology Industry is currently being discussed in the National Assembly and will continue to be reviewed at the upcoming 9th session.
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