Pham Minh Chính, the prime minister of Vietnam, has reportedly said that the country’s government should look into regulating cryptocurrencies, in part because residents continue to trade digital assets despite their lack of legal status.
According to an October 24 news item from online news outlet VnExpress, Chính hinted that an anti-money laundering, or AML, bill should recognize an amendment on virtual currencies, given that “in fact people are still trading” cryptocurrencies in Vietnam. The prime minister’s comments suggest that the Vietnamese government could consider regulating cryptocurrencies to address its role in financial crime.
“It is necessary to study the appropriate sanctions, and commission the government to draw up detailed regulations,” the prime minister said.
The Vietnamese government largely does not recognize cryptocurrencies like Bitcoin (BTC) as a payment method in the country, but allows the tokens to reside in a seemingly legal gray area as investments. A Chainalysis report published in September showed that Vietnam ranked first among all countries in cryptocurrency adoption in both 2022 and 2021, with “extremely high purchasing power and population-adjusted adoption through centralized cryptocurrency tools, DeFi, and P2P marketplaces.”
Some local legislators have pushed the adoption of crypto assets as the space and adoption grew. In March, Deputy Prime Minister Le Minh Khai asked the Ministry of Finance to study and amend laws aimed at developing a framework for cryptocurrencies. This followed an initiative announced by the prime minister in July 2021 calling on the State Bank of Vietnam to study and carry out a pilot project for a digital currency.
Vietnam’s National Assembly will debate the anti-money laundering bill on November 1 and is likely to approve or disapprove it at the end of its fourth session on November 15.
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