Clear legal framework key to borderless digital assets

Over the past decade, Vietnam has witnessed extraordinary advancements in technology worldwide, particularly in digital assets, including blockchain, cryptocurrencies, asset tokenisation, and decentralised finance.

Digital assets are no longer a novel concept but an integral part of the global financial system. Leading nations in this field have driven innovation and secured strategic positions in the global economy.

Nguyen Duy Hung, chairman of SSI. Photo: SSI

"To fully harness the potential of digital assets, a clear and transparent regulatory framework is essential. It serves as the foundation for investors, businesses, and communities to thrive in a secure and sustainable environment. However, the reality in Vietnam shows that the lack of such a framework presents significant hurdles for the sector," said Hung.

Hung affirmed that Vietnam, with its young, tech-savvy population eager to embrace new trends, is well-positioned to become a regional hub for digital asset development. Yet, enterprises in blockchain and digital assets often operate in an ambiguous environment, losing competitive advantages to neighbouring countries like Singapore and Thailand.

“This regulatory uncertainty hampers businesses and exposes users to risks, including fraud and a lack of transparency.

Furthermore, the incomplete legal framework discourages foreign investors and major technology corporations, who are increasingly opting for countries with more favourable policies, potentially causing Vietnam to miss critical development opportunities.

In this context, establishing a regulatory framework for digital assets is not only an urgent need but a cornerstone for sustainable growth in Vietnam’s technology sector and economy.

The SSI chairman urged the government to promptly enact clear and transparent regulations governing digital asset activities to instil confidence among investors and market participants. He also called for policies supporting innovation-driven enterprises, such as investment incentives, research funding, and international cooperation.

Nguyen Duy Hung, chairman of SSI. Photo: SSI

"A flexible regulatory approach is equally crucial to protect users while preserving the creativity that is the essence of digital assets. With a strategic vision and government support, I firmly believe Vietnam can emerge as a regional hub for digital asset innovation. This is not only an opportunity to align with global trends, but also a pathway to elevate the nation’s standing on the global technology map," emphasised Hung.

International collaboration in this field will also enable Vietnam to leverage the experiences of developed countries, helping to create an effective legal framework tailored to the nation’s unique context and needs.

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