Vietnam forms group for digital currency policy research

Vietnam’s Ministry of Finance has formed a research group in charge of exploring and formulating policies to manage digital currencies and virtual assets.

According to the ministry, the research group will include nine members led by Pham Hong Son, the vice chairman of the State Securities Commission. The other members will be representatives from the country’s securities regulator, the General Department of Taxation, the National Institute for Vietnam Finance, Vietnam Customs, and the State Bank of Vietnam’s Department of Banking and Financial Institutions.

The research group has been entrusted with creating policies that manage digital assets and will help the country stay updated with new developments within the fast-evolving blockchain sector. This allows the Asian nation to respond to regulatory challenges better.

Digital currency in Vietnam

In August 2017, the prime minister of Vietnam authorized the creation of a legal framework for digital currencies, indicating formal recognition of digital currency in Vietnam.

Later in the year, CryptoCompare revealed that about 80% of digital currency transactions emerged from Asian countries. Vietnam was one of the top five countries accessing digital currency websites and platforms, alongside the United States, Japan, and Russia.

Vietnam, however, banned Bitcoin’s use as a means of payment in April 2018. After the ban, authorities ordered credit institutions to curb the services offered to virtual currency providers to protect against anti-money laundering risks. Since the introduction of the directives in 2018, the situation has remained the same and there is no regulatory framework for digital currency exchanges.