With the strong development of information technology, forms of
online transactions has also gradually become a trend and develop strongly in
Vietnam. In recent years crypto currency has created a new phenomenon for
the global economy that some countries have been deploying to use such as
El-Salvador. However, not all countries accept crypto currencies especially countries
such as China, Russia, Thailand… are vehemently opposed to this type of crypto
currency for fear of risks to the national economy. In Vietnam, there has
been a number disputes involved crypto currency transactions through
investment, purchase and sales, which lacked legal framework for resolving,
creating challenges for lawyers, and dispute resolving authorities.
Fintech Lawyers in Vietnam
The State Bank of Vietnam also has a document prohibiting credit
institutions from using crypto currency as a currency or means of payment.
However, besides the potential risks, crypto currencies with the advantages of
being extremely fast, convenient features which only need an Internet
connection and wide application scope should be exploited. Recently, the Prime
Minister issued Decision 942/QD-TTg dated June 15, 2021 approving the Strategy
for E-Government Development towards Digital Government in the period of 2021 –
2025, with orientation to 2030 pilot using crypto currency. Specifically, the
Prime Minister assigned the State Bank to assume the prime responsibility for
researching, building and piloting the use of crypto currency based on
“blockchain” technology. This is considered a bold step, but it is suitable for
the context that illegal “underground” crypto currency exchanges are sprouting
up and also opening up a lot of potential for the country’s economy.
In fact, in recent years, although the state has issued a document
not to recognize crypto currencies, the opening and operation of illegal crypto
currency trading platforms are still common which many Vietnamese people
participate. The demand for Vietnamese people to own crypto currency is quite
high which crypto currency when approved by the Government will be positively
received by Vietnamese people. On the other hand, recently crypto currency has
appeared in the media with incidents relating to scams, illegal trading
platforms which are not protected by law. But in another aspect, crypto
currency transactions also help users perform many purposes such as Hence the
Decision 942/QD-TTg issued timely, although still in the testing phase, would
partly solve the needs of the economy as well as create strict management and
control to protect people. In addition, with the pilot recognition of crypto
currencies under the management of the state, it also opens up opportunities
for Vietnam to promote the development of new technologies in the e-Government
development strategy towards digital government.
Some positive aspects can be mentioned when crypto currency is
allowed to be used such as creating convenience in transactions. Specifically,
users do not have to go through any stage or intermediary and are not limited,
regardless of time and location during the transaction.
Decision 942/QD-TTg also poses many challenges for the Government
in management and control. With the “mobility” characteristic, the control of
“virtual currency” is not simple, especially for the country which is not yet a
highly developed in information technology. Therefore, in order to put “virtual
currency” into use, it is necessary to ensure the development of the
corresponding technology platform, and at the same time to build a strict legal
framework to minimize risks for users. On the other hand, if the “virtual
currency” is not well controlled, it will become a money laundering tool,
transnational money transferred from illegal co-economic activities such as
smuggling, opium, terrorist financing… Another important issue is that our
country’s Internet system is still unstable. Therefore, in order to be able to
circulate virtual money conveniently, it is necessary for Vietnam to further develop
the Internet system to ensure stability in transactions.
The crypto currency in Decision 942/QD-TTg shows the Government’s
aspiration for innovation and determination in moving closer to the goal of
national financial inclusion and a digital economy. However, the implementation
needs to have a roadmap and orientation as well as a strong legal foundation to
ensure effective implementation. Our fintech lawyers in Vietnam at ANT Lawyers
– law firm in Vietnam will always follow up
with development of legal framework in crypto currency and blockchain
technology in Vietnam to provide update to clients.
