Some cryptocurrency market participants believe that mass adoption of cryptocurrencies is related or influenced by the governments’ willingness to provide favorable regulatory framework. Some governments worldwide have been up to the task and are working towards the establishment of such regulations, while others are still considering it.
On May 11, the Ministry of Finance in Vietnam said it will come up with a research group responsible for examining and making policy proposals about cryptocurrencies and virtual assets. The research group will assist Vietnam to stay up-to-date with new developments within the quickly developing blockchain sector, thereby allowing the country’s response to regulatory issues with greater agility.
There are nine members in the group and the Vice Chairman of the State Securities Commission, Pham Hong Son, is the leader. Other members are representatives of Vietnam’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 prime minister of the country approved a plan in August 2017 towards overseeing the evolution of a legal framework for cryptocurrencies within one year, and this indicated legal recognition of cryptocurrency assets in the country. Nevertheless, in April 2018, Vietnam banned Bitcoin use as a means of payment, which meant that people cannot buy anything with virtual currencies but can make private investments in it.
After banning the use of Bitcoin for the payment of goods and services, the authorities mandated credit institutions to limit the services offered to virtual currencies for protection against anti-money laundering risks. Things have remained the same since the introduction of the directives in 2018, with no existing regulatory framework for cryptocurrency exchanges.
Even in the absence of a legislative framework, local companies have tried to set up exchanges in the country over the years. In recent times, Binance and Paxful peer-to-peer trading platforms focused on the market in Vietnam.