Vietnam to Create Legal Framework for Digital Assets Including Bitcoin

Vietnam to Create Legal Framework for Digital Assets Including Bitcoin

The Vietnamese Government is embarking on a project to complete a legal framework for the management and handling of digital assets, money and virtual assets.

As a result of the fact that bitcoin has led to various commercial disputes, civil disputes and criminal acts, the government of Vietnam now believes that virtual currency should be managed and supervised.

The government believes that when virtual currency is placed under close supervision and management, the number of commercial disputes, civil disputes and criminal acts that occur as a result of virtual currency would reduce.

It is the job of the government to ensure there is peace and order in the country. Hence, the government of Vietnam sees managing and supervising virtual currency as a good means of maintaining peace and regulating crimes and disputes.

It was planned that the government of Vietnam, together with the Ministry of Justice (MoJ), Ministry of Information and Communication (MIC), Ministry of Industry and Trade (MoIT) and the State Bank of Vietnam (SBV) would review the present legal framework about digital money, virtual currency and digital assets before the month of December, 2017.

In the year 2018, three decrees would be proposed to the government. These decrees are digital money, virtual currency and digital assets. Furthermore, the method of paying tax and criminal fines for violations of law as regards digital assets would be proposed.

Due to the fact that is lack of lawful regulations to adjust digital money and virtual currency, the task of managing the transactions have been very difficult as various challenges had been faced.

The difficulties faced resulted in budget loss and became a mechanism for evading task, selling weapons and money laundering. Vietnam is examining an increase in business transactions and investments with digital money, and there is an escalation of the scale from big cities to central provinces, northern border province and central highlands.

In Vietnam, digital currency pyramid scheme is attracting the interests of various investors, however lack of understanding and knowledge of digital currency results into investors bearing huge risks just to participate and be involved in accordance with the project.

Furthermore, digital money and virtual currency could lead to foreign currency bleeding that could cause instability and fluctuations in the money markets and financial realm.

Before now, bitcoin that happens to have a worldwide market of over twelve billion dollars was among the virtual currencies that was not legally approved and protected in Vietnam.

The central of Vietnam warned individuals and organizations not to hold, invest or execute transactions that involved bitcoin or other similar virtual currencies as possession, utilization and trading of bitcoin and other similar currencies posed risks and were not legally recognized and protected. The government of Vietnam had proposed the need to adjust and amend the laws concerning digital assets, virtual currency and digital money.

The government of Vietnam is preparing to analyze bitcoin and cryptocurrency. It would also provide a legal framework for digital assets in the future.

The prime minister of Vietnam has just given his approval on a plan to legalize and use digital assets. In no time, digital currencies would be legalized in Vietnam.

The prime minister encouraged the Ministry of Justice to work in collaboration with other institutions to find out how cryptocurrencies like bitcoin can be fixed into the society.

According to reports, the prime minister asked the Ministry of Justice to coordinate with ministries such as Ministry of Finance, Ministry of Trade, Ministry of Public Security, Ministry of Information and Communications and the State Bank of Vietnam to examine the current legal framework, provide a thorough assessment and propose solutions and revisions to the government. Reports state that all assessment for legalization by the ministries must be complete before August 2018.

Furthermore, all legal documents and other necessary information should be ready and submitted before the end of the year. Finally, the ministries must finalize a document by the month of June 2019 that makes provisions for legal framework for cryptocurrency taxes.

By the month of September, the ideas about how violations of cryptocurrency would be handled must be ready and submitted. Reports also state that ministries will have to finalize an application that seek to compile legal framework on taxes for cryptocurrencies by the month of June, 2019.

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