Need for appropriate management mechanism for digital assets in Vietnam

The rapid development of technology and digital assets has created profound changes in the global economy. In Vietnam, this trend is also taking place rapidly, posing an urgent need to build a clear legal framework to effectively manage and exploit the maximum potential of a new field.

Digital assets are not limited to cryptocurrencies such as Bitcoin or Ethereum, but also include many other types such as NFT (non-fungible assets), security tokens, stablecoins, or even digital currencies issued by central banks of countries. According to Chainalysis (a company providing data analysis services on blockchain - USA), in 2023, Vietnam will rank third in the world in terms of the rate of people participating in digital asset transactions. Capital flows related to these assets into Vietnam will reach about 105-120 billion USD, showing great potential for attracting investment and promoting economic growth.

However, the digital asset market in Vietnam is still not strictly managed. The lack of a clear legal framework exposes investors to many risks such as fraud, information insecurity, money laundering and financial fraud. This also causes significant losses to the state budget as transactions mainly take place on international exchanges or through unofficial channels.

Faced with the above situation, the Government has taken positive steps to build a suitable management mechanism. At the end of February 2025, General Secretary To Lam directed the study of applying a controlled testing mechanism (sandbox) in the field of digital assets. The Ministry of Finance, in coordination with the State Bank of Vietnam, was assigned to submit to the Government a legal framework for digital asset management this March.

According to experts, the development of a legal framework should not only stop at piloting digital currency exchanges but also cover more comprehensively different types of crypto assets. Developed countries such as Japan, Singapore or Dubai have soon realized the importance of managing this field. Japan requires all exchanges to register with the Financial Services Authority (FSA) since 2017. Dubai established its own Virtual Asset Management Authority (VARA) to attract investment and promote innovation in the blockchain field.

Vietnam can learn from international experience but also needs to take advantage of its own advantages to build a suitable model. A big advantage is that the national population data system managed by the Ministry of Public Security can be integrated with a customer identification (KYC) solution, helping to better control transactions and minimize the risk of money laundering. Blockchain technology can also be applied to permanently record all transactions, facilitating the tracing of money flows when necessary.

The government should also consider the possibility of issuing a national digital currency (CBDC). This is a trend that many large countries are experimenting with to improve payment efficiency and strengthen monetary sovereignty. Issuing a CBDC will help promote cashless payments in Vietnam, while reducing dependence on international payment platforms.

Another issue to note is the training of high-quality human resources in the field of blockchain technology and digital assets. Currently, the human resources with in-depth knowledge of this field in Vietnam are still limited. Therefore, the State needs to have policies to encourage universities and research institutes to cooperate with businesses to train a team of high-quality financial technology experts. At the same time, it is necessary to raise public awareness of the benefits and risks of participating in the digital asset market. Authorities need to increase communication so that people can better understand the nature of these new types of assets as well as how to participate safely.

Building a legal framework for digital asset management in Vietnam is not only an urgent requirement, but also opens up great opportunities for the country to take advantage of the potential of the rapidly growing digital economy globally. With a more comprehensive and flexible approach from the Government and close coordination between businesses and the investor community, Vietnam can absolutely become a leading digital asset development center in Southeast Asia.