Cryptocurrency is not banned in Vietnam: Ministry, Illustrative image (Photo: AFP)

Hanoi - Cryptocurrency is not banned in Vietnam but it is necessary to develop a legal framework to ensure its on-track development and prevent risks, a representative from the Ministry of Justice has said.

Cao Dang Vinh, Deputy Director of the Department of Economic and Civil Legislation, said on April 12 that there are still different understandings about virtual assets, digital currencies and cryptocurrencies. Countries also have different management approaches.

Cryptocurrencies contain a number of risks which make it easy to take advantage of this type of assets for appropriation or money laundering.

Vietnam has not had regulations to manage their development, he said, adding that cryptocurrency is not considered a legal asset.

It is necessary for Vietnam to develop a legal framework for cryptocurrency to prevent risks and illegal appropriation, he stressed.

When the Ministry of Finance raises specific proposals, the Ministry of Justice will have more detailed opinions.

The Government has asked the State Bank of Vietnam to study the pilot implementation of cryptocurrencies to prevent money laundering.

Two years ago, the National Assembly asked the Government to develop the legal framework for this new type of asset early.

In February, the Government asked the Ministry of Finance to study and complete the development of the legal framework to regulate cryptocurrency market by May 2025.

Cryptocurrency transactions in Vietnam are mostly implemented on international platforms or put-through transactions.

Statistics of the Vietnam Blockchain Association said that the value of cryptocurrencies Vietnam received totalled nearly 91 billion USD by September 2023, of which, illegal transactions were worth around 956 million USD.