Vietnam Sets Up Nine-member Panel to Study Cryptocurrencies For Regulatory Purposes

According to today’s report on a local news outlet, Vietnam’s Ministry of Finance has established a nine-man committee to study the pros and cons of cryptocurrencies on the nation’s economy, in order to develop regulation for the industry. 

The group will be headed by the Vice Chairman of the State Securities Commission, Pham Hong Son, with other members selected from various governmental institutions, such as the State Securities Commission, General Department of Taxation, State Bank of Vietnam’s Department, among others.

As per the report, the ministry believes that regulating the country’s cryptocurrency space is necessary due to the increased usage of cryptocurrencies, which could pose a risk to the nation’s financial market. 

Vietnam’s stiff stance on crypto

Before now, Vietnam has made several efforts to regulate the country’s cryptocurrency industry. One of these efforts includes a move made by Vietnam Prime Minister, Nguyễn Xuân Phúc, on August 21, 2017, that led to the approval of a project to complete the legal framework for managing digital assets activities.

Similarly, on April 11, 2018, a directive was issued to relevant authorities to manage crypto-related transactions, especially Bitcoin, in order to mitigate its negative impact on the nation’s economy.  

The order was followed by a stringent measure from the Governor of the State Bank of Vietnam, Lê Minh Hưng, directing all financial institutions not to provide essential financial services to crypto-related firms. 

Hưng said at the time that the measure was to ensure crypto-related firms comply with the established anti-money laundering (AML) and forex management policies in the country. 

However, the growing interest in cryptocurrencies, according to data provided by CryptoCompare last year, which saw Vietnam listed among the top five countries with the highest Bitcoin-related transactions, has forced the country to establish a general regulation to manage the industry. 

The news shows that the country has loosened up a bit on its constant disapproval against digital assets.

Earlier this year, Coinfomania reported that the Vietnamese Linh Thanh group, in collaboration with a blockchain company, KRONN Ventures AG, received a license to launch a cryptocurrency exchange in the country.