From December 2019 to May 2024, nearly 20,000 cases involving over 17,000 suspects were recorded for fraud and asset appropriation via cyberspace, resulting in losses of over 12 trillion VND (approximately 492 million USD).

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Lieutenant Colonel Nguyen Thanh Chung from the Department of Cybersecurity and High-Tech Crime Prevention discusses digital asset-related crimes. Photo: VBA

In 2024 alone, losses from online fraud exceeded 4.2 trillion VND (about 172 million USD), according to Lieutenant Colonel Nguyen Thanh Chung from the Department of Cybersecurity and High-Tech Crime Prevention under the Ministry of Public Security. He shared this information during the forum "Digital asset market: From trend to breakthrough" held on October 2 in Hanoi.

Chung noted that while Vietnam's digital asset market is currently vibrant, there remains a significant volume of unregulated peer-to-peer cryptocurrency trading happening on social media platforms - commonly referred to as the “black market.”

Numerous closed groups on platforms like Facebook operate under names such as "Buy and Sell USDT Vietnam" with nearly 400,000 members, "Buy and Sell USDT Central Vietnam - Trade Coin" with 73,000 members, and "Bitcoin Remitano USDT Black Market" with over 13,000 members. In these groups, trust is based solely on the feedback of veteran members.

Chung revealed that individual transactions on these black markets can range from a few thousand to hundreds of thousands of USDT, and in some cases even exceed one million USDT in a single day.

Such activities fall outside the oversight of state authorities, posing risks to monetary security. Large capital outflows go unmonitored, and many individuals and organizations enjoy significant profits without declaring income or paying taxes - causing major losses to the national budget.

An additional concern is the use of cryptocurrency for criminal purposes, enabled by its anonymity, cross-border capabilities, and lack of centralized intermediaries.

Several types of cybercrime have emerged, including asset fraud, money laundering through USDT, scams involving worthless token issuance, illegal fundraising, and illicit cross-border money transfers.

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Speakers participate in the forum on digital asset markets in Hanoi. Photo: VBA

Moreover, the unauthorized collection and storage of Vietnamese users' personal data on international trading platforms poses serious cybersecurity threats. Some cyberattacks have already caused losses amounting to tens of billions of US dollars globally.

Given these challenges, Chung emphasized key areas to address in implementing the pilot cryptocurrency market under Government Resolution 05. Organizations seeking licenses to operate in this market must comply with regulations, especially those involving Level 4 information system evaluations and risk assessments.

For individuals holding digital assets, a six-month period will be granted - starting from the licensing date of the first official pilot entity - for transferring their assets to domestic platforms.

Finally, Chung stressed the urgent need to finalize the legal framework to handle violations, and called for stronger coordination among regulatory agencies from licensing to post-pilot supervision.

During the forum, representatives from government bodies, associations, and businesses discussed Resolution 05, which outlines Vietnam’s pilot approach to the digital asset market. As of now, Vietnam has attracted over 220 billion USD in digital currency investments, ranking third in the Asia-Pacific region.

However, almost all trading still occurs on foreign platforms, highlighting an urgent need for stronger regulation to prevent cyber threats.

Phan Duc Trung, Chairman of the Vietnam Blockchain and Digital Asset Association (VBA), said the Digital Technology Industry Law and Resolution 05 are foundational for this emerging market.

Echoing this view, To Tran Hoa, Deputy Head of Market Development at the State Securities Commission, called Resolution 05 a major innovation. He said it provides a practical basis to build a domestic digital asset market, curb online fraud, protect investors, attract foreign capital, and prevent money laundering and terrorist financing.

Hoa added that while Vietnam has a large population of cryptocurrency investors, their knowledge and perspectives vary widely. Upgrading digital literacy and capacity will take time.

Vu Quoc Huy, Director of the National Innovation Center (NIC), noted that the Ministry of Finance has tasked the State Securities Commission and NIC to coordinate with associations, enterprises, and communities to evaluate the current market landscape. This will help improve the legal framework, making the market more efficient, transparent, and able to harness the immense potential of digital assets.

Du Lam