The Ministry of Justice has released a report on three key ways to manage cryptocurrencies in the world: floating, prohibiting and allowing virtual money businesses with attached conditions. 

The report is expected to help the Government consider and adopt the best method of cryptocurrency management, Nguoi Lao Dong newspaper reported.

Small toy figures are seen on representations of the Bitcoin virtual currency in this illustration picture, December 26, 2017

Speaking at a news conference on virtual currency and asset management held on October 29, Do Duc Hien, head of the Ministry of Justice’s Office, said that by end-September, the ministry had submitted a report to the Government reviewing and assessing the general legislation situation and virtual currency and asset-related business activities in Vietnam. Also, the ministry proposed a number of solutions to build a legal corridor. 

The global market has witnessed the emergence of a number of cryptocurrencies, of which Bitcoin and Ethereum are the most popular. The ministry reviewed and surveyed the spread and development of cryptocurrencies in Vietnam and the world in creating its report.

Nguyen Thanh Tu, director of the ministry’s Department of Civil and Economic Laws, pointed out that the ministry had analyzed the pros and cons of these trends as a basis for the Government’s consideration.

Tu said that virtual assets and currencies have both risks and potential, so it is necessary to balance potential with risks to guarantee benefits for investors and ensure the development of technology.

The relevant ministries and departments will build an appropriate legal framework to govern virtual assets and currencies after the Government chooses the trend it will follow, Tu stated.

Bitcoin is a form of digital money. It was invented by a person or group of people using the name Satoshi Nakamoto and was released as open-source software in 2009. Due to its widespread use in illegal transactions, high electricity consumption for its mining, price volatility, and thefts from exchanges, governments of countries across the world have issued alerts about it.

SGT