Cryptocurrency rules need to be clarified

The State Bank of Vietnam (SBV) is working on a new decree to regulate cryptocurrency. - Photo tapchibitcoin.vn

According to the drafting agency, cryptocurrency is not a new currency but only an expression of legal currency in the form of a tool or means of payment, which is used to make payment transactions.

Many countries around the world have issued regulations on the management of cryptocurrency, in which cryptocurrency is considered a means of payment.

In Viet Nam, in current legal documents, the term "cryptocurrency" is mentioned in the Law on Anti-Money Laundering, but this term has not been explained in sub-law documents.

To keep up with the development of payment products, the drafting agency said it is necessary to clarify cryptocurrency, synchronise legal regulations to develop payment products provided in the form of cryptocurrency and facilitate the development of e-commerce.

The drafting agency said that, in essence, cryptocurrency is considered a means of payment containing monetary value stored on electronic devices, with the forms of prepaid cards, e-wallets and mobile money.

Prepaid cards and e-wallets have become quite popular recently. Meanwhile, mobile money is still a new content being deployed by the Ministry of Information and Communications and the SBV.

Regarding mobile money, the SBV is asking for clarification on mobile money provision, mobile money security mechanisms and identification of mobile money service users.

Dau thau (Bidding) newspaper quoted lawyer Truong Thanh Duc, chairman of the board of members of Basico Law Firm, as saying that regulations on cryptocurrecncy are available but lacking.

He said it is necessary to add more regulations to ensure proper understanding, and to give a clear distinction between legal cryptocurrency and virtual currencies, which are not recognised legally yet.

“It is necessary to clarify mobile money and its scope of activities before popularising this form of payment,” he said.

In addition to explaining the concept in the decree, the lawyer said the need to enhance the security and safety for cryptocurrency users is important as there have been a lot of cases of losing money via cryptocurrency transactions in recent times.