HANOI – Vietnam is set to embrace the burgeoning digital asset market with a comprehensive legal framework, driven by Prime Minister Phạm Minh Chính's vision to leverage blockchain technology for national economic growth. The ruling Communist Party of Vietnam is pushing for swift regulatory action to capitalize on the country's already robust digital asset adoption.   

Prime Minister Chính has mandated the Finance Ministry and the central bank to submit detailed proposals by the end of March, aiming to harness the potential of digital assets to achieve Vietnam’s ambitious 2025 GDP growth targets. This directive comes as the nation seeks to maintain its competitive edge in the rapidly evolving global financial landscape.

“Policies need to be in place to ensure that Vietnam does not fall behind, miss opportunities, or create a gap with new financial models and modern trading methods,” stated Tô Lâm, the party’s general secretary, emphasizing the urgency of establishing a regulatory sandbox for virtual asset service providers (VASPs).

Despite operating in a regulatory gray area, Vietnam has emerged as a global leader in digital asset adoption. Chainalysis ranked the country fifth globally last year, with 21% of Vietnamese residents owning digital assets, according to Triple-A. The nation saw an impressive $105 billion in digital asset inflows last year, underscoring its significant market potential.   

While some experts believe the lack of regulation has inadvertently fueled adoption by keeping gains untaxed, there is a growing consensus that a formal framework will provide the necessary stability and transparency for long-term growth.

“New regulations in Vietnam would lead to a short-term impact on local fiat exchange trading, but in the longer term, clear regulation may encourage broader adoption and lay the groundwork for increased retail and institutional engagement,” noted Grace Chen, managing director of Bitget.

The proposed framework is expected to boost government revenues, with potential tax contributions estimated at over $800 million annually from a 0.1% personal income tax on digital assets, according to Trần Huyền Dinh of the Vietnam Blockchain Association. Additionally, formal regulations will enable Vietnamese VASPs to access banking services and raise funding, further stimulating the sector.   

Colombia Eyes Digital Asset Regulation to Spur Growth

Meanwhile, in South America, Colombia is also moving towards regulating its digital asset sector. Senator Gustavo Moreno and Representative Julian Lopez have introduced a bill to Congress, seeking to provide clarity and security for investors.   

“Colombia has fallen in the global ranking of cryptocurrency adoption. While other countries are moving forward, here we remain unregulated,” stated Representative López. The proposed bill includes 16 articles covering licensing, KYC, taxation, anti-money laundering measures, and investor education.

With over five million Colombians owning digital assets and nearly $7 billion in transactions last year, the country aims to create a more reliable and attractive ecosystem for digital asset investment. 

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