Policy mindset shifts

Recently, Dragon Capital announced a proposal for a pilot project to tokenise an exchange-traded fund (ETF). If approved by regulators, investors could purchase fund certificates using various forms of payment, including cryptocurrencies like Bitcoin. With Bitcoin prices surpassing US$120,000 globally and several countries accepting it as a means of payment, the proposal has drawn significant attention.

In Vietnam, while digital assets were initially recognised in the legal framework, the State Bank of Vietnam has not yet accepted virtual currencies as legal tender.

However, speaking with Dau tu (Vietnam Investment Review) newspaper, economist Dr. Nguyen Tri Hieu suggested it is time for Vietnam to seriously study this issue, given the rapid global changes driven by technologies like AI and blockchain.

According to him, the lack of clear regulations on digital currencies and related transactions leaves them operating in a grey area, which poses risks such as fraud, money laundering, and tax evasion.

Some international organisations estimate Vietnam’s annual digital asset transaction volume exceeds US$100 billion. The country has continuously ranked among the top five globally in Chainalysis’ Global Crypto Adoption Index for the past four years.

In terms of policymaking, the Vietnamese Government has recently shown a marked mindset shift. The Law on Digital Technology Industry, recently passed by the National Assembly, officially recognises digital and tokenised assets. The Prime Minister has instructed ministries to finalise and submit a draft decree for a pilot digital asset market by July 15, 2025.

This policy breakthrough paves the way for investors. Experts held that in the near future, regulated payments using Bitcoin or stablecoins in certain scopes may well become a reality.

Globally, the cryptocurrency industry witnessed a historic milestone last week as the US House of Representatives passed the GENIUS Act, establishing a legal framework for stablecoins, cryptocurrencies pegged to the US dollar, awaiting final approval from President Donald Trump.

Numerous countries worldwide have already adopted or are piloting the use of Bitcoin as a means of payment under varying degrees of regulation.

Billion-dollar playing field draws major players

Vietnam’s digital asset landscape is increasingly attracting heavyweight players, not only domestic banks, securities firms, asset managers, and tech enterprises, but also global powerhouses.

Last week, Binance, the world’s largest cryptocurrency exchange, announced the “Blockchain for Vietnam” initiative, aiming to position the country as a regional hub for blockchain innovation. As part of the initiative, Binance pledged US$1 million to raise blockchain awareness and foster the technology application to sectors where Vietnam holds competitive edges.

Binance CEO Richard Teng remarked that Vietnam holds strong potential for cryptocurrency growth thanks to its youthful population and tech-savvy workforce. It currently ranks among the world’s top 10 countries for digital asset adoption.

Teng added that formalising digital asset regulations in Vietnam will provide investors with new opportunities. He predicted that once a digital asset exchange is established, it could become one of the most attractive investment platforms for young Vietnamese.

Meanwhile, Will Ross, Chief Marketing & Distribution Officer at Dragon Capital Vietnam, noted that instead of focusing solely on traditional assets like gold, real estate, or securities, policymakers should establish a legal framework that reassures investors looking to participate in the digital asset space.

A growing number of domestic and foreign investors are showing interest in building Vietnam’s digital asset infrastructure and ecosystem. These include SSID, Tether, IDGX, U2U Network, Amazon Web Services (AWS), Binance, Bybit, and BingX.

Experts believe that once a national digital asset exchange is operational, Vietnam could attract substantial global capital, and digital assets and cryptocurrencies will emerge as standout investment channels, particularly as real estate prices remain prohibitively high.

Authorities promote developing legal framework for digital assets

Authorities with potential responsibility for digital assets are stepping up moves for the development of a legal corridor where they will be covered.