Vietnam setting up to legalize cryptocurrency

Vietnam is set to legalize bitcoins, other cryptocurrencies and digital assets. The Vietnamese Prime Minister, Nguyen Xuan Phuc, has asked the Ministry of Justice to coordinate with other agencies including the State Bank of Vietnam and the Ministry of Finance to draft a framework for legalization of cryptocurrency by the end of the year and to come into effect in August 2018.

Tinuku Vietnam setting up to legalize cryptocurrency

Vietnam will join Japan and South Korea that have legalized bitcoin. The Prime Minister of Vietnam also instructed to develop the best way to collect taxes using digital currencies and punish regulatory violations. The task must be completed in June and September 2019.

The plan is part of a 2016 mandate that the country should take a more open stance toward digital currencies and other financial technologies. In early 2014, the State Bank of Vietnam has declared that the crypts are not a valid means of payment, but they have now changed their minds.

Earlier this year the central bank formed a fintech committee to promote the development of financial technology startup. Vietnam is one of the fastest growing countries in the world and many citizens have access to smartphones but many never use traditional banks.

Vietnam is in the same stage with Ukraine where this month the National Bank of Ukraine developed a legal framework for bitcoin regulation. The Philippines only approved the registration of two bitcoin exchanges, while India still limited the idea of legalization.