Hanoi (VNA)꧑ – As digital assets become increasingly popular in Vietnam, experts are calling for the urgent creation of a legal framework to protect users, manage risks, and boost state budget revenues.

According to blockchain research firm Chainalysis, blockchain-related capital inflows to Vietnam reached over 105 billion USD between 2023 and 2024, with estimated profits of 1.2 billion USD. A report by Triple-A shows that more than 17 million Vietnamese people, around 17% of the population, own digital assets, far above the global average of 6.5%. For three consecutive years, Vietnam has ranked among the top five countries in terms of cryptocurrency adoption. Despite the impressive growth, the lack of regulations has exposed users to fraud, money laundering, and tax evasion. Most transactions occur on global platforms like Binance and Coinbase, which operate outside Vietnam’s jurisdiction. Nguyen Duy Hung, Chairman of SSI Digital, noted that while Vietnam is one of the top markets for digital asset trading, investors remain vulnerable due to the absence of legal protection. A legal mechanism for digital assets is needed so that people can participate safely and start-ups can access funding more easily, he said. The lack of legal regulations has also forced Vietnamese blockchain start-ups such as Kyber Network and Axie Infinity to register abroad, leading to capital outflows and reduced tax collection. Tran Huyen Dinh, CEO of Alpha True, said that digital assets, by nature decentralised and borderless, present unprecedented challenges for state management. These include cybercrime, money laundering, personal data protection, and national digital infrastructure security. According to Dinh, Vietnam needs a comprehensive strategy built on four pillars: a completed legal framework, a controlled sandbox model, blockchain monitoring technology, and enhanced public-private cooperation both domestically and internationally. To address these issues, at its 9th session, the 15th National Assembly passed a resolution urging the government to quickly study and introduce a legal framework to pilot a digital asset market. The resolution emphasised the importance of managing risks, promoting controlled innovation, and tapping into the potential of digital finance and technology. Dinh said the government’s assignment of the Ministry of Finance to draft a resolution marks a shift from policy discussions to real action. He suggested the framework include advanced standards on data security, risk management, and operational systems, as well as clear rules on separating user assets from platform assets, wallet management, and real-time reporting. “If designed carefully, this pilot can help the government control risks in the Web3 space without holding back innovation,” Dinh said. From an economic perspective, taxing digital asset transactions at just 0.1% could bring in over 800 million USD per year. Additional revenue could come from personal income taxes on profits, corporate taxes from exchanges, and VAT on related services. Dr. Chu Thanh Tuan of RMIT University Vietnam said the lack of legal clarity makes it difficult to tax digital assets effectively. Defining and classifying digital assets clearly is the key to applying tax regulations. The Government’s move to speed up the legal framework is a positive step, he said. Richard Teng, CEO of Binance, also stressed the importance of building legal frameworks through collaboration between regulators, policymakers, and businesses. He suggested learning from global standards in identity verification, anti-money laundering, and crypto asset custody, while also exploring the use of blockchain and AI to modernise outdated banking infrastructure. Bui Van Huy, Head of Investment Research at FIDT, warned that unclear regulations contribute to market instability, scams, and investor losses. He welcomed the government’s plan to establish a pilot digital asset exchange, which would allow regulators to collect data, assess risks, and design an official legal framework. “The pilot exchange will be an important step toward building a safe and well-regulated digital asset market in Vietnam,” Huy said./.