Regulation
Vietnam Crypto Regulatory Framework for 2025: Latest Updates
Vietnam announces plans to develop a legal framework for regulating cryptocurrencies by May 2025 to manage ownership risks and prevent illegal activities such as money laundering.
Key takeaways
- Cryptocurrencies are not banned in Vietnam, but regulation is urgently needed.
- The Ministry of Finance has been tasked with developing a regulatory framework by May 2025.
- Measures against abuse, such as money laundering, are also being studied.
Urgent need for a legal framework
A Vietnamese government official said cryptocurrencies are not banned in the country, but there is a critical need to establish a legal framework to regulate them.
Cao Dang Dinh, deputy head of the Civil Law Department of the Ministry of Justice, stressed the urgency of this task.
The Ministry of Finance is expected to develop this framework, which is expected to be completed by May 2025.
Efforts against financial abuse
As VN Express reported, along with developing a legal plan, Vietnam’s central bank is studying ways to stop using cryptocurrencies for illegal activities such as money laundering.
This action highlights how the government is working to reduce the dangers associated with digital currencies.
Historical context and future directions
Vietnam ranks among the best in the world in terms of cryptocurrency ownership among its residents.
According to Dinh’s statement, this widespread use highlights the need for strong legal rules, because without them, big risks could be exploited.
In 2021, the Vietnamese Ministry of Finance conducted several studies, indicating the need for new laws to manage growing areas of the financial sector, including promoting educational initiatives on cryptocurrencies.
They are also examining ways to help regulators better monitor licenses and track suspicious financial activity.