Proposing the Ministry of Finance, Public Security, and State Bank to jointly manage cryptocurrency exchanges

The Ministry of Finance proposed a coordination mechanism with the Ministry of Public Security and the State Bank in managing pilot cryptocurrency and digital asset exchanges.

This information was announced by Mr. Bui Hoang Hai, Vice Chairman of the State Securities Commission (Ministry of Finance) on March 20. According to Mr. Hai, the Ministry of Finance has submitted to the Government a draft Resolution on piloting the issuance and trading of digital currency and digital assets.

In particular, the Ministry proposed a management coordination mechanism between three agencies, including the Ministry of Finance, the Public Security and the State Bank with cryptocurrency and digital asset exchanges. This is to minimize risks to financial security.

According to the representative of the Ministry of Finance, this type of asset is constantly developing, complex, and potentially risky for investors and the financial market. Therefore, in the initial pilot phase with a limited and controlled scale, the participation of management agencies in supervision will meet the needs of the market. At the same time, this also helps them have time to come up with appropriate policies to manage digital money and digital assets.

"This is also a common approach of many countries," Mr. Hai said, adding that the pilot also helps minimize illegal acts such as money laundering and terrorist financing.

Mr. Bui Hoang Hai, Vice Chairman of the State Securities Commission (Ministry of Finance). Photo: MOF

Cryptocurrencies such as Bitcoin, Ethereum... are considered popular digital assets. However, Vietnam does not have a specific definition of cryptocurrency and digital assets. Current regulations only mention the concept of cryptocurrency anchored to fiat money, existing in the form of bank prepaid cards and electronic wallets.

Due to the lack of a legal framework for identifying and classifying cryptocurrencies and trading and buying and selling these assets, tax authorities have no basis to apply corresponding tax policies. However, according to a representative of the Department of Tax, Fee and Charge Policy Management and Supervision (Ministry of Finance), in cases where the law clearly defines the nature and allows cryptocurrencies to be traded and bought and sold as a type of asset, the authorities will collect taxes according to regulations. Taxes that can be calculated include value added tax (VAT), corporate income tax, personal income tax, etc.

There is currently no legal framework for cryptocurrencies and digital assets, so many businesses choose to register in Singapore or the US and then operate in Vietnam, causing a loss of competitive advantage and tax loss. From the user's perspective, the lack of transparency leads to risks in transactions. Therefore, having a legal framework to identify and value digital assets soon will help businesses access capital from banks, thereby having money to invest.

According to the Vietnam Blockchain Association (VBA), Vietnam will have up to 17 million people owning crypto assets in 2024, ranking 7th globally. Last year, Vietnam received more than 105 billion USD in crypto, down from 120 billion USD in 2023.

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