Digital assets now indispensable choice

In the draft Law on Digital Technology Industry presented to the National Assembly in November, the government, for the first time, addressed digital assets. According to the draft, these are intangible assets in the form of digital data, created, issued, stored, transferred, and authenticated through digital technology.

Digital assets now indispensable choice, Source: freepik.com

These assets are legally protected in accordance with regulations on civil law, intellectual property, and other related legislation. Digital assets include security tokens, tokenised securities, payment tokens, and assets with value and property rights as prescribed by law.

Phan Duc Trung, vice chairman of Vietnam Blockchain Association, stated at a seminar on digital assets hosted by the Ministry of Information and Communications and the association on December 6 that after many revisions, the Digital Technology Industry Law now provided clear definitions of digital assets but differentiated between digital assets and tokenised assets. These definitions are consistent with current legal frameworks and regulations in economies such as the US.

Trung asserted that the enactment of the law in May 2025 would fill a critical gap in Vietnam’s digital transformation. “We already have digital government, digital economy, digital society, and digital citizens, so legalising digital assets as a connecting link among these elements will help complete the overall picture of digital transformation,” he said.

When digital assets are officially defined and regulated under the Digital Technology Industry Law, they will significantly contribute to protecting user rights, minimising risks, promoting the digital economy, attracting investment, fostering innovation, and enhancing Vietnam’s position on the global stage.

Mai Huy Tuan, CEO of SSI Digital, told VIR that the new law could lay the groundwork for Vietnam to become a regional hub for digital assets in 2025.

However, Tuan acknowledged Vietnam’s greatest challenge lies in its incomplete legal framework, which creates a lack of clarity and transparency, eroding investor and business confidence.

“The risks of cybersecurity and data breaches in digital asset transactions are significant, as criminal organisations can exploit anonymity to commit money laundering or fraud. Additionally, the limited availability of high-quality human resources and the insufficient adaptability of government agencies to the rapid pace of technological development pose further challenges,” said Tuan.

To address these issues, he recommended establishing a regulatory sandbox for testing digital asset products and services in a monitored but innovation-friendly environment. The sandbox will enable Vietnamese tech and fintech companies to develop faster within a controlled legal framework, he said.

“To manage risks, the legal framework should set basic requirements for anti-money laundering and combating the financing of terrorism. Businesses participating in the sandbox must implement simple yet effective e-verification procedures and promptly report suspicious transactions to regulators. Deploying monitoring technologies such as big data analytics and AI will enhance fraud detection capabilities without disrupting business operations.”

Una Fu, country director of digital asset trading platform MEXC, stated that the potential new law was not only a positive signal for the financial industry but also marked a milestone that would help Vietnam quickly align with financial trends.

“With strict management and protection of domestic user rights, more citizens and investors are becoming confident in exploring and investing in digital assets, which already exhibit exceptional growth potential both now and in the future.”

Fu also noted that the development of digital assets promises significant changes for the financial and banking sectors. “They will upgrade and expand their services by introducing new solutions such as digital asset custody, tokenised asset trading, and asset ownership management. Additionally, digital assets will emerge as a new asset class, complementing traditional forms such as stocks, bonds, and real estate,” she said.

Clear legal framework key to borderless digital assets At the Vietnam Tech Impact Summit 2024, hosted by securities company SSI and FPT Corporation on December 3 in Hanoi, Nguyen Duy Hung, chairman of SSI, highlighted the significant challenges facing Vietnam’s technology and digital asset sectors due to the absence of a clear regulatory framework.

Vietnam to become digital asset hub Vietnam is projected to become a second home for leading global tech corporations and a cradle for digital assets in the coming years.

Big risks for investors in digital assets At the Vietnam Tech Impact Summit 2024 on November 3, experts said that Vietnam was Asia's most attractive technology destination and a promising land for digital assets. However, there are also risks for investors.