Vietnam’s Digital Assets Legalization Framework Aims to Combat Crypto Fraud

Vietnam’s proposed digital assets legalization framework is expected to minimize crypto fraud in the country’s cryptocurrency space once passed. Phan Đức Trung, chairman of the Vietnam Blockchain Association, emphasized the need for a clear regulatory framework to combat fraud, citing a recent $100 million crypto scam targeting Vietnamese investors.

According to Trung, the lack of regulatory clarity in Vietnam’s current laws creates “policy grey zones” that allow criminals to evade accountability. This ambiguity provides opportunities for bad actors to operate through entities registered in offshore jurisdictions, making enforcement difficult.

Crypto Adoption in Vietnam

Vietnamese citizens are among Asia’s most active crypto investors, with estimated blockchain-related capital inflows of $105 billion for 2023-2024. Approximately 17 million Vietnamese people use cryptocurrencies, collectively earning $1.2 billion in profits from crypto investments in 2023. This places Vietnam third globally in crypto investment profits, behind the United States and the United Kingdom.

Despite these impressive figures, the lack of regulatory clarity allows bad actors to operate freely, exploiting Vietnamese investors. Recent cases include the arrest of eight suspects involved in a crypto investment scam in Hanoi, which defrauded victims of over $1 million. Four suspects were also arrested in Dong Nai Province for defrauding victims of more than $150,000 in a crypto mining scam.

Proposed Framework and Expected Outcomes

The draft law, tentatively set for passage in Q2 2025, aims to establish a legal framework for consumer protection and dispute resolution. It will address issues such as money laundering and illicit financial flows associated with cryptocurrency in Vietnam.

Key aspects of the proposed framework include:

  • Consumer protection measures to safeguard investors
  • Dispute resolution mechanisms for crypto-related disputes
  • Regulations to prevent money laundering and illicit financial flows

“A clear regulatory framework is essential to combating crypto fraud and protecting investors in Vietnam.” – Phan Đức Trung, Vietnam Blockchain Association chairman

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