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Are OTP SMS or biometric forms electronic signatures?

Báo Ninh BìnhBáo Ninh Bình31/05/2023


The Draft Law on Electronic Transactions (amended) has classified electronic signatures according to the scope of use including: Specialized electronic signatures; public digital signatures and specialized digital signatures for public service.

The Draft Law on Electronic Transactions (amended) has classified electronic signatures according to the scope of use including: Specialized electronic signatures; public digital signatures and specialized digital signatures for public service.

Presenting the Report on explanation, acceptance and revision of the draft Law on Electronic Transactions (amended) on May 30 at the National Assembly, Chairman of the National Assembly's Committee on Science, Technology and Environment Le Quang Huy explained the opinions suggesting the need to clarify the content of digital signatures and electronic signatures; Are forms of one-time password (OTP) confirmation, transaction authentication codes via electronic messages (SMS) or biometrics considered electronic signatures?

Mr. Huy said that currently, SMS, OTP, Token OTP, biometrics, electronic user identification (eKYC)… are used quite commonly in electronic transactions. However, these forms are only considered electronic signatures when: They are logically combined with the data message; they are capable of confirming the subject signing the data message and confirming that subject’s approval of the content of the signed data message.

In response to the opinions of National Assembly deputies, the draft Law has revised the content of the explanation of the terms "Digital signature" and "Electronic signature." The draft Law has classified electronic signatures according to the scope of use, including: Specialized electronic signatures; public digital signatures and specialized digital signatures for public service.

Regarding some opinions proposing to add regulations to create a legal basis for other electronic authentication measures, the National Assembly Standing Committee found that in general principles for conducting transactions, the parties are allowed to "Self-agree on the selection of technology, electronic means, and electronic signatures to conduct electronic transactions."

Chairman of the National Assembly's Committee on Science, Technology and Environment Le Quang Huy said that in fact, according to reports from banks, customers can use transaction accounts, passwords, OTP codes, etc. provided by banks to make transactions. This is a form of confirming customers' approval of the content of data messages (transaction content), but these forms are not electronic signatures as prescribed by law.

Therefore, the Standing Committee of the National Assembly has directed to supplement Clause 4, Article 25, stipulating that other forms of confirmation by electronic means other than electronic signatures shall be implemented in accordance with the provisions of specialized laws, to be consistent with practical implementation.

Regarding the scope of regulation, some opinions suggested considering the implementation roadmap to ensure feasibility; some opinions suggested limiting the scope of regulation to the fields of land, inheritance, divorce, marriage, birth registration, etc. Incorporating the opinions of National Assembly deputies, the draft Law was amended in the direction of only regulating the implementation of transactions by electronic means, not regulating the content, form, and conditions of transactions in different fields, including the fields of defense and security. Transactions in any field will be regulated by the specialized laws of that field.

Chairman of the Committee on Science, Technology and Environment Le Quang Huy added that based on the opinions of National Assembly deputies, the draft law has added the provision "The Minister of National Defense shall build and develop a specialized digital signature authentication system for public service in accordance with the provisions of law."

The expansion of the scope of regulation as stipulated in the draft Law is based on the technical infrastructure, technology, etc. in Vietnam which is now ready, ensuring safety and reliability. Agencies, organizations, and individuals participating in transactions have the right to choose technology, electronic means, etc. to carry out transactions.

In addition to regulations on data messages, electronic signatures, conclusion and implementation of electronic contracts , the draft Law has added regulations on trusted services, electronic certificates, electronic transactions in State agencies, etc. to have a legal basis to guide electronic transactions in accordance with the scope of the law./.

(Vietnam+)



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