TLDR
- Vietnam launches a five-year pilot program to test crypto asset trading.
- Only Vietnamese firms can issue and trade crypto assets in the pilot.
- The program aims to assess market viability and regulatory needs.
- Crypto transactions must be conducted in Vietnamese dong during the trial.
Vietnam has officially launched a five-year pilot program aimed at testing the viability and regulatory framework for crypto asset trading within its borders. This marks a significant step in the Southeast Asian country’s approach to the digital asset sector. The program is designed to assess both the operational and regulatory aspects of the growing crypto market in Vietnam.
The initiative, announced earlier today, will allow the government to gather data and insights that could shape future regulations. It also provides a structure for evaluating market dynamics, ensuring that Vietnam can adopt appropriate oversight mechanisms for digital assets.
Vietnam Controlled Approach to Crypto Regulation
Under the new regulations, only Vietnamese companies are authorized to provide crypto platforms. These firms must adhere to a series of compliance requirements to operate within the pilot program.
Additionally, the Vietnam dong is the only currency allowed for the issuance, trading, and payment of crypto assets, a unique feature of this trial phase.
The Vietnamese government has outlined a set of clear goals for the program, with an emphasis on transparency, safety, and efficiency. The authorities aim to strike a balance between encouraging innovation in the crypto sector and protecting consumers from potential risks. The pilot will also allow authorities to monitor how crypto assets are used, traded, and invested.
Pilot Program Requirements and Limitations
The pilot program will operate under strict guidelines to ensure the protection of both investors and the integrity of the market. Only Vietnamese companies can issue crypto assets, but the program allows these assets to be offered to foreign investors.
The government’s guidelines also prohibit the use of securities or fiat currencies as underlying assets for the crypto assets offered during the trial.
In addition to the regulatory structure, the program will focus on maintaining compliance with anti-money laundering (AML) and counterterrorism financing regulations. Companies involved in crypto asset trading must ensure that they operate in line with network security and data protection laws to safeguard the market’s operations.
Crypto Asset Trading Services and Market Transparency
The program outlines several requirements for crypto asset service providers, which must be licensed by the Ministry of Finance to operate legally. These providers will facilitate services such as crypto asset trading, custody, and the issuance of tokens.
Domestic and foreign investors can open accounts at these licensed providers to trade crypto assets. However, anyone trading crypto assets outside of the licensed platforms will face sanctions or legal consequences. Additionally, the program requires transparency in terms of information disclosure. Crypto companies must publish detailed information about their operations, including the offering and issuance of crypto assets, to ensure public trust.
The tax policies for transactions involving crypto assets during this period will be aligned with those for securities. However, the government plans to review these policies and make adjustments once more clarity is gained about the industry’s growth and its economic impact.
