Gov’t urges control of cryptocurrencies

In a bid to address concerns over money laundering and terrorist financing linked to virtual assets, the Government has tasked the Ministry of Finance with drafting a legal framework to either ban or regulate cryptocurrencies. This decision follows a meeting where the State Bank of Vietnam (SBV) was urged to evaluate risks associated with businesses involved in casinos, gaming rewards, and virtual assets.

Despite the passage of the amended Law on anti-money laundering in late 2022, cryptocurrencies are not recognized as legal tender in Vietnam. Currently, virtual asset trading in the country predominantly occurs through international exchanges or direct negotiations, potentially leading to money laundering.

To mitigate these risks, the National Assembly two years ago urged the Government to establish a legal framework for these assets.

According to a report released by the Vietnam Blockchain Association in September 2023, Vietnam received nearly US$91 billion worth of virtual currencies in a year from October 2021 to October 2022, with around US$956 million associated with illegal activities.

This regulatory initiative is part of the Government’s broader effort to remove Vietnam from the Financial Action Task Force (FATF) grey list by May 2025. Countries on this list are subject to stringent FATF supervision regarding money laundering and terrorist financing.