Report: Vietnam's prime minister calls for cryptocurrency regulation
October 26, 2022 11:11 PM
According to reports, Prime Minister Pham Minh Chinh said, "It is necessary to study appropriate sanctions, and assign the government to make detailed regulations."
Apparently Prime Minister Pham Minh Chinh of Vietnam has said that the government is looking into crypto regulation because citizens are still trading cryptocurrencies despite the fact that they are not recognized by the state.
Since "in fact people still trade" crypto in Vietnam, Chinh reportedly suggested on Oct. 24 that a bill on anti-money laundering (AML) should recognize an amendment on virtual currencies. The prime minister's remarks raised the possibility that Hanoi might regulate cryptocurrencies to combat their use in illegal financial transactions.
"According to reports, the prime minister stated, "It is necessary to study appropriate sanctions and assign the government to make detailed regulations."
While the Vietnamese government does not officially recognize Bitcoin (BTC) or other cryptocurrencies as legal tender, it does appear to tolerate their use as an investment vehicle. According to a report published by Chainalysis in September, Vietnam topped the list of countries with the highest adoption of cryptocurrencies in 2022 and 2021, as measured by "extremely high purchasing power and population-adjusted adoption across centralized, DeFi, and P2P cryptocurrency tools."
As the industry and interest in crypto assets grew, some lawmakers in the area began advocating for their widespread use. The Finance Ministry was given the task of investigating and potentially revising existing cryptocurrency laws in March by Deputy Prime Minister Le Minh Khai. The Prime Minister of Vietnam had announced plans for a digital currency pilot in July 2021, prompting the State Bank of Vietnam to begin research and testing.
The AML bill will be debated in the Vietnamese National Assembly on November 1, with a vote on its fate expected before the end of the 4th session on November 15.