Many cryptocurrency investors want to pay taxes but don't know who to pay them to.

On the morning of April 24, Communist Magazine, Ho Chi Minh City Institute for Development Studies and University of Finance and Marketing organized a scientific workshop 'Digital currency sandbox towards developing a comprehensive international financial center in Ho Chi Minh City.

Dr. Truong Minh Huy Vu, Director of the Ho Chi Minh City Institute for Development Studies, said that although there is no clear legal framework, the scale of digital currency transactions among Vietnamese people is still very large, estimated at up to 100 billion USD per year in the past 3 years, with about 27 million participating accounts.

Most of the activities generating profits and costs related to crypto assets take place abroad, such as Singapore, the US, and Hong Kong (China). Therefore, Vietnamese people participating in investing in this type of currency face great risks.

This practice poses an urgent requirement that the development of the crypto asset market must be associated with two principles - sustainable development and consumer protection, avoiding the risk of being "herded" and scammed.

According to him, it is necessary to pilot the construction of a legal corridor with the viewpoint that "if you cannot manage it, then ban it". Instead, it is necessary to pilot the management and protection of both holders, traders and brokers of crypto assets.

To protect individual investors, he suggested that Vietnam could refer to international experience (US, Dubai, Singapore, EU...), prioritize sandbox and consumer protection, and learn from lessons from bond investments that have occurred in the market in recent times.

In addition, the development of digital currency must meet the requirements of system security and safety, anti-money laundering and anti-terrorist financing mechanisms, etc. At the same time, there needs to be a mechanism to review and determine taxes because the revenue from this market is very large, estimated to be up to 800 million USD/year.

"Many investors and businesses operating in cryptocurrency share that they really want to pay taxes but do not know how to pay taxes, to whom... If there are regulations, this is a huge revenue source and ensures the sustainable development of this market.

In the near future, Vietnam will pilot five trading floors with the participation of foreign investors, but the ownership ratio will be limited. When there is a suitable legal framework, the market will be transparent and consumer rights will be guaranteed," Mr. Vu shared.

In addition to the sandbox mechanism pilot to create a Vietnamese stock market (Ho Chi Minh City University of Economics), including a start-up cryptocurrency exchange in the form of ICO - initial coin offering and a decentralized stock exchange.

These testing floors will create a special attraction for the Vietnamese financial market, different from current international financial centers that only focus on tax or policy incentives.

According to Associate Professor Dr. Nguyen Huu Huan, for the cryptocurrency trading market, it is necessary to apply AI technology to control price fluctuations, analyze data and detect fraud to protect investors from big 'shocks'.

In addition, it is necessary to clearly define who will be responsible in case of technical problems, like the recent $1.5 billion hack of Bybit exchange, to increase confidence for participants. Along with that, there is an additional cryptocurrency insurance fund...

Source: https://nld.com.vn/nhieu-nha-dau-tu-tien-so-muon-dong-thue-nhung-khong-biet-nop-cho-ai-196250424102307219.htm