Opportunities and challenges in Vietnam's crypto boom

Vietnam boasts one of the most active investment communities in the cryptocurrency sector. However, protecting investors and promoting sustainable growth requires a robust legal framework.

Vietnamese investors earned nearly 1.2 billion USD in profits from Bitcoin and other cryptocurrencies in 2023. (Photo: baodautu.vn)
Vietnamese investors earned nearly 1.2 billion USD in profits from Bitcoin and other cryptocurrencies in 2023. (Photo: baodautu.vn)

Hanoi (VNS/VNA) - Vietnam ranked fifth globally in the 2024 Global Crypto Adoption Index, according to the US blockchain analysis firm Chainalysis.

During the 2023–24 period, the capital flow from the blockchain market into Vietnam reached over 105 billion USD.

Chairman of the Vietnam Blockchain Association Phan Duc Trung said that tokenised traditional assets are forecasted to reach 16 trillion USD by 2030, accounting for 10% of global GDP, while currently standing at only 0.6%. So Vietnam cannot remain outside this trend.

With over 17 million people owning crypto assets in 2024, Vietnam is positioning itself as one of the pioneering countries in blockchain.

Additionally, Vietnamese investors earned nearly 1.2 billion USD in profits from Bitcoin and other cryptocurrencies in 2023, ranking third globally, behind only the US and the UK.

Despite being among the top countries with the highest crypto earnings, Vietnamese investors are also among the most frequent victims of cryptocurrency scams.

On January 4, Tran Minh Quang and three other individuals were arrested during an investigation of alleged fraudulent appropriation of assets in Dong Nai province.

The police accused them of developing the fraudulent website BitMiner in order to induce investors into buying a fake cryptocurrency. Over 200 people have fallen victim by submitting 4 billion VND (158,730 USD) to the fraudulent platform.

Head Of Investment Advisory at Maybank Investment Bank Phan Dung Khanh said that most cryptocurrency trading occurs on foreign-based exchanges without local representation. Since Vietnamese law has yet to officially recognise digital assets, investors bear full responsibility for any risks they encounter.

“The risk of being scammed in the cryptocurrency market is extremely high,” Khánh warned. He explained that investors could face international fraudsters and even fall victim to schemes orchestrated by acquaintances, given the anonymity of cryptocurrencies.

Legalising digital assets

While Vietnam remains a bright spot in the global blockchain landscape, the country must urgently establish a robust legal framework to protect investors and promote sustainable growth in the cryptocurrency market.

Vietnam has set an ambitious goal, wanting to become the leading country in the region for the blockchain industry by 2030. Experts believe that legalising digital assets will be a key prerequisite for achieving this objective.

Despite being among the leading countries in terms of the number of investors owning cryptocurrencies, Vietnam currently lacks clear policies on digital assets.

Experts suggest that establishing legal frameworks for digital assets would foster blockchain industry growth, create new economic resources and increase opportunities for investors. It would also be instrumental in curbing fraud in this sector.

Chairman of the Vietnam Blockchain Association Trung revealed that the association had received reports of a fraud case involving nearly 100 million USD. However, the perpetrators continue to evade accountability due to the guise they are using, involving companies based in remote island nations, exploiting the ‘policy grey zones’ in Vietnam.

He hoped that the draft law on digital technology industry, scheduled to be passed by the National Assembly in the second quarter of 2025, would establish a legal corridor to protect consumers. It will also provide a basis for dispute resolution and integrate underground financial flows into the formal economy, preventing tax revenue losses.

Additionally, experts are optimistic about the development of international financial centres in HCM City and Da Nang. These centres are expected to have a more open mechanism for blockchain applications, thereby unlocking its economic potential./.

VNA

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