Piloting a digital asset exchange: balancing investment incentives and risk control

Mr. Bui Hoang Hai, Vice Chairman of the State Securities Commission (SSC) - Ministry of Finance - Photo: VGP/HT

Speaking with the Government E-newspaper, Mr. Bui Hoang Hai, Vice Chairman of the State Securities Commission (SSC) - Ministry of Finance affirmed: The implementation of the Resolution on piloting the issuance and trading of crypto assets will be a stepping stone for Vietnam to gradually build a legal framework in line with global trends.

Pilot resolution to improve capital mobilization capacity

Recently, at a working session with the Central Policy and Strategy Committee (February 24, 2025) on the growth target set for 2025, General Secretary To Lam agreed with the proposal on the need to soon manage cryptocurrencies as a type of virtual asset to avoid negative impacts on the economy and social issues, while helping to contribute value to the country's economy.

The Prime Minister has also issued important instructions to ensure legal regulations related to virtual currency.

The leader of the State Securities Commission said that most recently, on March 3, 2025, Prime Minister Pham Minh Chinh chaired a meeting of the Government Standing Committee on completing the legal framework to manage virtual assets, virtual currencies and crypto assets. This is an important step, marking the Government's interest in this field in the context of the rapidly developing digital economy.

Accordingly, the Ministry of Finance is assigned to prepare a dossier to submit to the Government for issuance of a pilot Resolution, aiming to promote research and development of new technologies while ensuring economic and financial stability. Based on Official Dispatch No. 22/CD-TTg dated March 9, 2025 and Notice No. 81/TB-VPCP dated March 6, 2025, the Ministry of Finance has submitted to the Government a draft Resolution on pilot implementation of issuance and trading of crypto assets.

The Government's main viewpoint is to take advantage of opportunities from blockchain technology to improve capital mobilization capabilities, create conditions for enterprises to innovate, but at the same time, put financial safety first. The implementation of the pilot Resolution will be a stepping stone for Vietnam to gradually build a legal framework in line with global trends.

Testing mechanism towards safety , promoting innovation

The digital asset market has been developing at a rapid pace, not only in Vietnam but also around the world. According to experts, the application of the sandbox mechanism will bring many significant benefits. First of all, the sandbox helps create a flexible legal environment, allowing testing of new business models without causing major disruption to the financial system. At the same time, it helps management agencies have time to evaluate, research and adjust policies appropriately before issuing official regulations. This is also a popular approach in many countries such as Singapore, the UK or Japan.

However, Mr. Bui Hoang Hai admitted that, in addition to opportunities, the digital asset market also poses many challenges. The explosive growth of crypto assets increases the risk of money laundering, terrorist financing and other illegal financial activities. In addition, the high volatility of digital assets can affect investors and pose risks to the economy.

Therefore, the pilot implementation requires close supervision from management agencies. The government will control the market size during the testing phase, and at the same time set standards to protect investors' interests. If implemented properly, the sandbox will not only help develop the digital asset market in a transparent manner but also create a solid foundation for building a complete legal system.

One of the most important issues in building a legal framework for digital assets is how to balance investor protection and innovation promotion. This requires close coordination between many regulatory agencies, including the Ministry of Finance, the State Bank of Vietnam, the Ministry of Public Security and relevant agencies.

"The Ministry of Finance, in its leading role, is proposing solutions to support startups in the digital asset sector, while establishing rules to ensure market transparency. Meanwhile, the State Bank is tasked with monitoring the impact of digital assets on monetary policy and the financial system.

The Ministry of Finance, in its leading role, is proposing solutions to support startups in the digital asset sector, while establishing rules to ensure market transparency.

In addition, the Ministry of Public Security will play an important role in preventing fraud, scams and money laundering in the digital asset market. The coordination between these agencies will help create a safe digital asset ecosystem, while opening up new opportunities for innovative businesses," Mr. Bui Hoang Hai noted.

One of the biggest problems in building a legal framework for digital assets is tax policy. According to the leader of the Department of Tax, Fee and Charge Policy Supervision and Management (Ministry of Finance): The tax legal system in Vietnam has general regulations on value added tax, corporate income tax and personal income tax. However, because digital assets are not yet clearly identified in the legal system, tax application in this field still faces many challenges.

If digital assets are recognized as a legal asset, related transactions will be subject to tax according to current regulations. However, to avoid reducing the attractiveness of the market, the Government can consider applying preferential tax rates in the initial stage. This will help encourage investment and promote the development of the digital asset ecosystem in Vietnam.

"There needs to be a mechanism to control tax evasion and tax fraud in this field. Some countries have applied blockchain technology to track and monitor digital asset transactions, thereby ensuring transparent and effective tax collection. Vietnam can also learn from the experiences of these countries to build a tax management system suitable for the domestic context," emphasized a representative of the Department of Tax, Fee and Charge Policy Supervision and Management (Ministry of Finance).

Speaking to the Government E-newspaper, Mr. Mai Huy Tuan - General Director of SSI Digital Technology Joint Stock Company - SSI DIgital (SSID) expressed his hope that some policies to support domestic enterprises, such as incentives for technology research and development or start-up support, can help the innovation ecosystem become more vibrant. In terms of consumer protection, it is necessary to ensure a transparent auditing process, public information of trading floors, along with a sufficiently flexible mechanism for receiving and handling complaints. When these solutions are implemented smoothly, the market will both maintain stability and form a favorable foundation for new ideas to develop.

The legal value of digital assets, such as Bitcoin, Ethereum... should be recognized early, along with full guidance on issuance, trading, and custody.

Licensing Vietnamese entities with sufficient capital, technology and reputation will help establish official trading channels, acting as a bridge to attract foreign capital into Vietnam. To ensure users feel secure in transferring transactions from foreign exchanges to domestic exchanges, it is necessary to build a payment infrastructure closely connected to the banking system, strictly complying with KYC, AML, CFT procedures. At the same time, a mechanism to ensure investor rights in the form of a reserve fund or support package in case of incidents will also encourage more people to participate in trading on domestic exchanges.

Huy Thang