Vietnamese authorities are still considering how to regulate the digital currency industry. Vietnam’s Ministry of Justice has proposed several different solutions, while Vietnam’s Ministry of Industry and Trade has expressed its opposition to banning the import of mining machines.
Report of the Ministry of Justice of Vietnam on Digital Currency Supervision
Vietnam’s Ministry of Justice has submitted a report to the Hanoi government reviewing existing legislation and assessing domestic digital currency-related business activities. The authors of the document have also made a series of proposals for changes they deem necessary.
Vietnam's Ministry of Justice explores three regulatory options adopted in different other parts of the world. The first is "floating", with a relatively loose regulatory regime. The second is "prohibited", which is self-explanatory. The third is to legalize digital asset transactions under certain conditions.
The department has investigated the state of digital currency development in Vietnam and abroad. Nguyen Thanh Tu, director of Vietnam's Department of Civil and Economic Law, analyzed the pros and cons of the situation based on the investigation. According to the Vietnam News Network, Nguyen said the analysis will be the basis for further consideration by the Vietnamese government.
He also said that after authorities choose which trends to follow, relevant authorities will establish appropriate legislative frameworks to regulate digital currency assets and digital currencies. He believes that the Hanoi government should balance the risks and potentials associated with digital currency to ensure the interests of investors while supporting the overall development of digital currency technology.
Vietnam still has no clear stance on digital currencies
Vietnamese authorities have yet to make a final decision on the digital currency. The country’s central bank has made it clear that digital currencies are not legal tender. In July, Vietnam’s central bank said it was not involved in any work regulating the circulation of bitcoin within Vietnam, warning that the virtual currency could not be used for payments. In July, Vietnam’s securities regulator told companies and investment funds to stay away from digital currencies. Vietnamese Prime Minister Nguyen Xuan Phuc has ordered relevant agencies to draft a legal framework on digital currencies and their industry.
According to an estimate cited by Vietnam News, about 1 percent of Vietnamese currently use digital currencies. Vietnam has a population of 95 million, which is equivalent to nearly a million digital currency enthusiasts. This number is expected to increase 30-fold over the next decade. Domestic digital currency exchanges have been accelerating the proliferation of digital currencies. Ho Chi Minh City-based Bitcoin Vietnam is currently the most popular digital currency exchange, according to Cryptocurrencyhub. The operator of the exchange also launched the trading platform Vbtc. Kenniex is a new exchange that started trading in May of this year. Platforms like Remitano, Mesito, and Localbitcoins all offer peer-to-peer trading services.
Ministry of Industry and Trade opposes ban on import of mining equipment
The digital currency mining industry has become a source of income for many Vietnamese companies and ordinary citizens, but digital currency mining is not popular with some Vietnamese authorities. This summer, Vietnam’s Ministry of Finance proposed to ban the import of mining equipment, a measure supported by the State Bank of Vietnam and the Ministry of Public Security. According to statistics provided by Vietnam’s General Department of Customs, more than 27,000 mining rigs were imported into the country in 2017, and more than 15,000 in the first five months of this year.
However, not all agencies are in favor of the ban. For example, the Ministry of Industry and Trade expressed concern about the ban and warned that the measure would affect all businesses using this type of hardware. The department has submitted a proposal to the prime minister's office to study and classify the equipment before restricting imports. The Ministry of Communications has divided them into two categories, ASICs and GPUs, noting that graphics cards have applications other than mining.
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