In recent months, many countries have begun to legislate for virtual assets. In this episode, Vietnam’s Deputy Prime Minister Le Minh Khai has instructed the Finance Ministry to draft laws for cryptocurrencies. Bringing digital assets under the purview of laws would make this category a part of Vietnam’s economy and also reduce the risk of cryptocurrencies being used for illegal activities. The Ministry of Justice, Information and Communications, as well as the State Bank of Vietnam, will be assisted in making laws for this segment.
Vietnam Net’s Report Accordingly, the authorities have also been asked to identify various aspects related to the category of digital assets. This will include research on the types of virtual assets and analysis of other countries’ experiences with this segment. The research will also gather information on the linkage of virtual assets with common currency.
India, Australia, Dubai and Brazil have taken steps to bring the crypto segment under the purview of the law. The US and UK have also ordered legislation to monitor and regulate the crypto segment. Crypto assets are decentralized and because of this it is difficult to trace the transactions associated with them. This increases the possibility of cryptocurrencies being used for illegal activities such as money laundering and terrorism funding. For this reason many countries are trying to tighten the controls on this segment. There is also a risk of challenge to normal currencies from crypto.
For this reason many countries central bank digital currency (CBDC) are being explored. In a recently issued executive order on the crypto segment in the US, the Federal Reserve has been asked to consider introducing a CBDC. Like cryptocurrencies, blockchains are created on technology but controlled by a central bank. The State Bank of Vietnam has also been given the responsibility of conducting research on CBDCs. By one estimate, about 5 million people in Vietnam have cryptocurrency, which is more than 6 percent of its population.