According to the draft Law on Digital Technology Industry, the Vietnamese Government will classify digital assets and crypto assets based on their intended use, technology, and other criteria, in order to develop a suitable management framework.
On the morning of January 6, the National Assembly Standing Committee held a discussion session on the Law on Digital Technology Industry, which defined digital assets as a type of asset stipulated in the Civil Code, expressed in the form of digital data and can be created, issued, stored, transferred, and authenticated via digital technology in an electronic environment.
According to the draft, virtual assets are digital assets that can be traded or transferred, and can be used for payment or investment purposes. However, virtual assets do not include securities, digital fiat money, or other financial assets as prescribed by current laws.
On the other hand, crypto assets are defined as digital assets that are created, issued, stored, transferred, and authenticated using blockchain technology, distributed ledger technology (DLT), or similar digital technologies.
Legal Framework for Digital Assets: Need for Investment, Research and Thorough Review
Mr. Le Quang Huy, Chairman of the National Assembly's Committee on Science, Technology and Environment, representing the agency reviewing the draft law, said that digital assets are a new and complex field that is developing rapidly. Currently, the world still does not have a complete legal framework to manage this type of asset, and there are many different views on this issue.
Le Quang Huy – Chairman of the Science and Technology Committee
Therefore, the draft Law on Digital Technology Industry aims to build a legal framework on the concept and classification of digital assets based on the purpose of use, technology and other factors. The Government will be responsible for detailing the classification, authority and management content of digital assets as well as related services, ensuring that it is consistent with the reality and conditions of Vietnam.
In addition, there are opinions that it is necessary to consider amending the Civil Code, the Law on Electronic Transactions and the Law on Securities to adjust the regulations on digital assets to be consistent 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 edited and updated so as not to overlap or conflict with current regulations, so it is not necessary to amend the above laws.
Digital Asset Management: Need to be Consistent with International Practices and Anti-Money Laundering Laws
Mr. Vu Hong Thanh, Chairman of the National Assembly's Economic Committee, agreed that digital assets are a complex issue and there is no unified regulation in the world. He gave the example of Bitcoin, a popular virtual asset, for which the Vietnamese Government has requested the Ministry of Justice to develop a legal basis for management. However, Vietnamese people still use Bitcoin for transactions, and therefore, he emphasized that the management of digital assets must comply with current regulations in the Law on Anti-Money Laundering that is being drafted.
Next steps and legal framework for virtual assets
Currently, digital currencies such as Bitcoin, Ethereum, etc. have become popular virtual assets, however, Vietnam still does not have an official legal definition of this type of asset. Current regulations only mention cryptocurrencies, but mainly within the framework of legal currencies in the form of bank cards or electronic wallets.
In February 2024, the Government assigned the Ministry of Finance to research and develop a legal framework to regulate or ban virtual assets and organizations providing services related to this type of asset, with the goal of completion by May 2024. This is to limit risks such as money laundering and terrorist financing related to virtual asset transactions.
The current situation of virtual asset trading in Vietnam
According to data from the Vietnam Blockchain Association (VBA), in the period 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 adequate legal regulations on digital and virtual assets.
The Digital Technology Industry Law Project is currently under discussion at the National Assembly and will continue to be considered at the 9th Session in the coming time.