Many countries have implemented flexible crypto policies

At the end of February, the Vietnamese government has tasked the Ministry of Finance (MoF) and the Ministry of Science and Technology with developing policies and regulations on digital assets, controlled sandbox mechanisms, and required these agencies to complete the task no later than the second quarter.

On March 1, the prime minister also instructed the MoF and the State Bank of Vietnam to submit to the government a legal framework for managing digital assets and cryptocurrencies in March.

Lynn Hoang, the country director for Binance in Vietnam, said that many developed countries are also looking for appropriate approaches and regulations for digital assets. A well-regulated environment protects users and promotes innovation, encourages widespread acceptance, and enhances market stability.

“I believe that addressing issues related to digital assets within a legal framework can help enhance investor confidence in digital assets and engage more traditional investors. This will be a key driver for the market to rapidly mature,” Hoang added.

According to Triple-A last year, around 20 million Vietnamese people own digital currency, over 21 per cent of the population. Vietnam ranks second in the world for cryptocurrency ownership, behind only the United Arab Emirates.

In 2024, the amount of cryptocurrency flowing into Vietnam reached $105 billion, a decrease from the $120 billion in 2023, according to Chainalysis. This figure is nearly three times the total foreign direct investment capital into Vietnam and equivalent to about one-quarter of national GDP.

Despite strong growth, the legal framework for digital assets in Vietnam is still incomplete. The lack of specific regulations leads to various risks such as fraud, money laundering, and tax evasion.

As per the Vietnam Blockchain Association (VBA), the world has recorded over 650 cases of cryptocurrency exchange hacks, causing damages of up to $12.8 billion in the past five years.

The market has already recorded 20 hacking incidents involving nearly $2.5 billion in the first two months of 2025. The three main types of attacks in the cryptocurrency field include private key compromise, cross-chain bridge attacks, and smart contract exploits.

Dr. Nguyen Duy Lan, a technology expert from the VBA, said that cryptocurrency attacks often combine vulnerability exploitation and use social engineering techniques to target various weaknesses. The three main types of attacks in the cryptocurrency field include private key compromise, cross-chain bridge attacks, and smart contract exploits.

“The increasingly sophisticated attacks by hackers are having a significant impact on the market and investor confidence,” Lan said. “As the digital asset market continues to grow, the lack of a clear legal framework not only exposes investors to risks but also limits the potential of the blockchain industry. Only with regulations as a solid foundation can we build a trustworthy cryptocurrency ecosystem that protects users and fosters innovation,” he said.

Many countries around the world have implemented flexible financial policies to access and manage cryptocurrencies and digital assets.

Many economies worldwide have taken significant strides in managing digital assets. Japan is one of the first countries in the world to legalise cryptocurrencies. Since 2017, Japan has recognised bitcoin as a legal payment method and required cryptocurrency exchanges to register with the Financial Services Agency of Japan.

Singapore, as a major financial hub in the region, has adopted a more flexible approach. The Monetary Authority of Singapore has established a legal sandbox system for fintech and blockchain companies to test products in a controlled environment.

China, known for having one of the strictest stances on cryptocurrencies, is aggressively promoting the digital yuan with the ambition to partially replace cash and compete with digital payment platforms like Alipay and WeChat Pay.

Meanwhile, Thailand is ready to launch a pilot in Phuket in 2025, allowing tourists to use bitcoin for payments.

According to blockchain communication and marketing expert Krist Pham, a clear legal framework will bring three major benefits to Vietnam, including preventing significant tax losses from digital asset transactions, motivating the development of the fintech and blockchain industry, and providing peace of mind for investors when pouring capital into blockchain projects.

“Vietnamese blockchain startups often register in Singapore due to its transparent policies and better support. With proper regulations, Vietnam can retain and develop domestic enterprises,” said Pham.

She added that instead of just focusing on taxation, Vietnam needed a long-term strategy to encourage businesses and the development of the digital economy, and to attract capital and technology.