Vietnam Considers Legal Framework for Cryptocurrency Amid Growing Interest in PI Network

• Vietnam is taking significant steps toward creating a legal framework for cryptocurrencies, aiming to enhance regulation and facilitate growth in the digital assets sector.

• Currently, the absence of clear regulations puts many local businesses at a competitive disadvantage, prompting the need for immediate legislative action.

• “We aim for a clear roadmap that supports innovation while ensuring compliance,” stated a senior official from the Ministry of Finance.

Vietnam is gearing up for a comprehensive legal framework to regulate digital currencies, aiming to enhance transparency and foster growth in the cryptocurrency market.

Vietnam is Ramping Up Crypto Regulation Efforts

According to Tuoi Tre, Prime Minister Chinh has just signed Directive No. 05 on solutions to promote national growth to reach 8% or more in 2025. The request to submit a proposal for a legal framework on digital currency is an important part of this Directive.

“The Party has directed, the Government has agreed, the National Assembly has agreed, the People have supported, and the Fatherland has expected. So just discuss to action, not to retreat,” said the Head of Government.

As of now, crypto is not considered a digital currency in Vietnam. Many businesses register in Singapore or the US and then operate in Vietnam. This leads to a competitive disadvantage and tax revenue loss.

This is why the Head of the Government has directed the MOF and SBV to propose a legal framework for digital currency within this month.

A legal framework will help businesses access capital from banks. It will also make investment and funding more accessible.

From a user perspective, transparency will help minimize risks that may arise in transactions. This could contribute to Vietnam’s plan to tax crypto transactions and digital assets.

Overview Of A Legal Framework For Digital Currency In Vietnam

Following data recorded by COINOTAG from Triple-A, Vietnam currently ranks 7th globally in terms of cryptocurrency ownership. There is also increasing hype over the newly launched Pi Network (PI) that has caused Vietnam Authorities to issue a warning.

However, the government has yet to provide a specific definition for virtual currency and virtual assets.

Vietnam is among the top countries in terms of crypto ownership. Source: Triple-A

Previously, the Government considered incorporating provisions and regulations on digital assets into legal documents under the Law on Digital Technology Industry. The concept of digital assets was first defined as intangible assets.

More specifically, the regulation classified crypto as digital data. Digital technology creates, issues, stores, transfers, and authenticates this data in an electronic environment.

In early 2025, the Standing Committee of the National Assembly aimed to define and classify digital assets. They based the classification on purpose, technology, and other criteria.

Earlier, during a meeting with the Central Committee’s Policy and Strategy Board on economic growth targets, General Secretary To Lam stated the need to study and apply a controlled testing mechanism (sandbox) to establish an exchange for digital assets.

The Vietnamese Government will launch and operate Financial Hubs in Ho Chi Minh City and Da Nang in 2025.

Last week, the Prime Minister ordered the MOF and MOST to create policies on digital assets and sandboxes. They must complete them by Q2 2025.

Conclusion

As Vietnam forges ahead with its regulatory framework for cryptocurrencies, the initiative is expected to bolster economic growth while ensuring greater transparency and security in the burgeoning digital assets market. With a robust legal framework, Vietnam could solidify its position as a leader in cryptocurrency adoption and innovation in Southeast Asia.