Nguyen Thi Minh Tho, deputy head of the Anti-money Laundering Department, said there is no legal document stipulating the use and management of cryptocurrencies, virtual money and VA, but there are research works mentioning the issue.

From the perspective of anti-money laundering, the State Bank of Vietnam (SBV) uses the concept ‘tai san ao’ (virtual assets – VA). The concept is widespread, covering all relevant issues and is used by financial task forces.

Regarding VA, based on risks related to money laundering, SBV has recently cooperated with the ministries of Finance (MOF), Justice (MOJ), Information and Communications (MIC) and other agencies to carry out national assessments on money laundering, including a component project assessing VA risks.

“The results of the national assessment on money laundering, including the assessment of VA, have been approved by the PM via a government resolution,” Tho said at the May regular press conference, adding that more detailed information will be released in the time to come.

Under the Prime Minister’s Decision No194 released on February 23, 2024, Action No6 clearly states that Vietnam needs to build a legal framework to prohibit or correct VA and VASP.

According to the SBV official, the Prime Minister has assigned tasks to ministries and branches. MIC and SBV have to take many actions to handle the risks of virtual assets.

The 2022 Law on Anti-Money Laundering lacks provisions about VASP. However, it says that if risks exist, the Prime Minister will submit a request to the National Assembly’s Standing Committee to add VASP to the list of subjects to be covered by the law.

VA under management, or prohibition?

VA is a general concept and comprises many different types. Of these, RWA (Real World Asset), i.e., virtual assets connect real assets.

Phan Duc Trung, deputy chair of the Vietnam Blockchain Association (VBA), RWA can have direct impact on FDI (foreign direct investment) in Vietnam.

“The reason is very simple. RWA bears high liquidity of tokens combined with real existence according to the old legal system. This helps solve two problems simultaneously: the virtual nature of tokens and the low liquidity of real assets,” Trung explained.

He believes that RWA will be inevitable in the near future. BCG predicted that RWA volume may reach $16 trillion by 2030, equal to 10 percent of global GDP.

Regarding managing VA, Trung said VA may be exploited for the purposes of money laundering and terrorism sponsorship, which is a real risk that many countries are facing.

However, management agencies need to keep a comprehensive view about the issue and should not focus on the risks while ignoring the potential benefits that VA in particular and new types of assets in the future can bring to the national economy.

In the future, VA may have a strong impact on the global economy, including Vietnam. VAs can open up great opportunities for the economy, promote the development of technology, create new financial services, improve the efficiency of transactions, and reduce costs. VA can also attract international investments, promote creativity, and develop technology startups.

VBA believes that prohibiting VA is an extreme action which must not be the optimal solution to VA. Instead, a clear and transparent legal framework is a good choice as it helps manage risks, and at the same time, exploits the positive aspects of VA.

VA, or crypto-assets, are assets created through the development of science and technology on the traditional internet. VA is accepted in many countries and territories.

VA, for example, is legally recognized in the UK, Australia, Canada, the US, New Zealand, Singapore and Switzerland. This kind of assets is being managed by the regulations similar to the regulations for the stock market.

The EU promulgated MiCA (the Markets in Crypto Assets Regulation), expected to take into effect in December 2024. Meanwhile, El Salvador even accepts bitcoin as an official currency and uses the state budget to invest in the asset.

In Vietnam, VBA believes that state management agencies need to set legal regulations to manage and supervise the activities related to VA, and set regulations on security, compliance with the law and anti-money laundering.

Trong Dat