Experts are pushing for the Vietnamese government to implement a legal framework for managing and developing digital currencies, arguing this would channel significant amounts of floating capital back to the economy. According to Associate Professor Dr. Dinh Trong Thinh, digital currencies, commonly known as virtual currencies, are not money in the traditional sense, but rather virtual assets used for accumulation and investment.
Currently, the lack of specific legal definitions and regulations means digital currency activities are taking place freely within Vietnam. Dr. Thinh emphasized, "If we don't regulate it, it will still happen anyway, so it's best to establish clear mechanisms for management." He pointed out the urgent need for oversight, arguing, "There could be billions of dollars being used by Vietnamese to trade virtual currencies outside the control of the state. Recognizing it and allowing open trading would reveal vast amounts of capital on the market, providing new financial resources for the economy."
The urgency of this initiative is starkly highlighted by the circumstance many Vietnamese investors find themselves in: trading without government oversight, as summed up by lawyer Tran Tuan Anh, the Director of Minh Bach Law Firm. He remarked on Vietnam's historical hesitance to embrace new, unclear economic elements, saying, "Our international integration compels us to keep pace and develop legal frameworks for new economic activities, including transactions for digital currencies."
With the establishment of clear regulations governing digital currencies, Tuan Anh believes Vietnam can create new market dynamics. He noted, "The establishment of clear legal guidelines for digital currencies would signify substantial regulatory progress and would encourage foreign investors to engage on Vietnamese trading platforms, facilitating international resource inflow."
Another compelling argument for regulatory oversight is the potential to reduce fraudulent activities related to digital currencies. Tuan Anh explained, “At the moment, because transactions occur underground without oversight, there’s no tax revenue generated, leading to significant tax losses for the state.” He added, “Clear regulations would eliminate underground transactions, clarifying the boundaries between legal and illegal activities, and would help mitigate scams.”
Enabling domestic investors to operate within a secure legal framework is also part of the broader picture according to both experts. Tuan Anh pointed out, "Investors clamoring for legal clarity want to know precisely what they can do and what their rights and responsibilities are," reinforcing the notion of providing security and rights to investors.
Dr. Thinh echoes this sentiment, asserting, "The new legal framework will provide straightforward direction on the concept of virtual currency investment, which is pivotal for managing potential fraudulent activities." He noted the troubling reality of the current cryptocurrency exchanges being run independently by individuals or organizations without regulation, which introduces great risks for investors.
Thinh stressed the time-sensitive nature of adopting this legal framework: "Establishing regulatory structures for digital currencies is urgent, as its positive impacts on the economy could be significant and sync with global trends."
The call for clear legal definitions and policies around digital currencies has gathered momentum, as both experts and legal professionals recognize this as not just beneficial, but necessary for Vietnam's economic future. The anticipated framework could pave the way for the emergence of healthy, transparent markets poised to capitalize on modern economic advantages.