The Vietnamese Government Will Pilot a Digital Asset Trading Platform at the International Financial Center.
Three legislative initiatives have created the premise for the digital asset sector, including the National Assembly's Resolution on financial center development, the proposal to pilot a digital asset trading platform, and a new law clarifying asset definitions. The Ministry of Finance is finalizing policies to submit to the Government.
- The Government will pilot a digital asset trading platform at the international financial center.
- Three legal initiatives create a foundation for digital asset industry development.
- The Ministry of Finance prioritizes highly liquid assets and enhances cybersecurity.
What Steps Has the Vietnamese Government Taken in Developing the Digital Asset Market?
The Vietnamese Government has passed a series of important initiatives to promote the digital asset market, including the National Assembly's approval of a Resolution on international financial center development, the Ministry of Finance's proposal to pilot a digital asset trading platform, along with a new law clearly defining this type of asset.
The National Assembly's decision creates a solid legal basis, helping to prepare infrastructure and legal frameworks for digital asset trading and issuance activities. The Ministry of Finance's early proposal also demonstrates proactiveness in building a transparent, safe business environment in line with global trends.
These steps not only enhance digital asset industry development but also elevate Vietnam's international financial center role in the region.
How Has the Ministry of Finance Developed the Digital Asset Trading Platform Pilot Policy?
The Ministry of Finance is finalizing the digital asset trading platform pilot policy to submit to the Government in August 2024. This policy regulates digital asset issuance, trading, and management activities.
Service providers are authorized to independently select listed asset portfolios, prioritizing highly liquid assets to ensure market stability and safety. The Ministry of Finance also emphasizes Blockchain technology's importance as the core infrastructure.
Simultaneously, the policy focuses on enhancing cybersecurity and risk management to protect users and increase ecosystem trust.
"Developing a pilot digital asset trading platform will create an important stepping stone for Vietnam to move towards digital financial development while ensuring investor safety and transparency."
Quote from the Minister of Finance, August 2024
What Role Does the State Bank Play in Digital Asset Development?
The State Bank is researching the national cryptocurrency (CBDC) model, creating a basis for cryptocurrency development in the national payment system.
CBDC development aims to promote cashless payments, increase transparency, safety, and minimize risks in financial transactions. This is a global trend adopted by many countries to synchronize traditional financial systems with digital technology.
The State Bank's research is expected to pave the way for advanced monetary and payment policies, contributing to increasing the competitiveness of Vietnam's economy.
What Technical Factors Are Emphasized in the Pilot Policy?
Blockchain technology is identified as the core infrastructure for the pilot digital asset trading platform, with the policy prioritizing cybersecurity enhancement and overall risk management.
Blockchain application helps ensure transaction data transparency, security, and integrity. Additionally, strengthening risk management and cybersecurity aims to limit attack risks, fraud, and asset reduction, protecting market participants.
This is the technical foundation that will gradually standardize and build trust in Vietnam's emerging digital asset market.
What Are the Opportunities and Challenges from the Digital Asset Trading Platform Pilot?
The pilot will help Vietnam leverage advanced technology, attract investors and businesses developing digital assets, contributing to digital economic growth and enhancing the financial center's status.
Challenges lie in perfecting the legal framework, ensuring information safety, risk management, and building market awareness to limit negative risks such as fraud or significant price volatility.
This is an important step requiring close coordination from regulatory agencies, experts, and businesses to promote sustainable, transparent market development.
Frequently Asked Questions
Where Will Vietnam Pilot the Digital Asset Trading Platform?
The digital asset trading platform is expected to be piloted at the international financial center, where many financial enterprises and experts are concentrated.
Does the Ministry of Finance Specify Any Criteria for Listed Digital Assets?
Highly liquid assets will be prioritized, helping increase platform trading stability and capability.
Does the State Bank Have Plans to Develop a National Cryptocurrency?
The State Bank is researching the national cryptocurrency (CBDC) model to modernize the payment system.
Does the Pilot Policy Prioritize Any Technical Factors?
Blockchain technology is chosen as the core infrastructure, while enhancing cybersecurity and risk management.
What Benefits Does This Pilot Offer to Vietnam's Economy?
It helps develop the digital economy, attract investment, elevate the financial center's status, and apply new technologies.
