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How Vietnam is regulating and expanding its crypto industry



Vietnam as a nation is popular in the global crypto industry. It ranked in the 4th position for countries that use Binance in May 2023. 

Furthermore, as per Statista’s data, the revenue generated by crypto exchanges within the Vietnamese market is anticipated to attain 109.4 million USD by the year 2023. 

Additionally, the count of crypto enthusiasts is projected to surge to 12.37 million by 2027.

Despite these positive figures, Kyros Ventures in a report of Vietnam says that the Asian country does not recognize cryptocurrencies as legal tender, leading to the absence of crypto taxes. 

It adds that while ongoing discussions surrounding crypto regulations, significant changes have been limited. 

It is also important to note that the deliberate omission of peer-to-peer lending and virtual asset service providers from the recently introduced anti-money laundering regulations in March 2023 indicates a change in response to the industry.

Currency hedge: Bitcoin’s appeal and VND volatility

Looking at the reason why Vietnamese like other nations opt for crypto (with Bitcoin as a major) reveals the fluctuations in the Vietnamese dong’s (VND) value due to central bank actions. 

Kyros notes that Bitcoin gained popularity as a tool for mitigating currency risks in 2022, as evidenced by data from Statista. 

This underscores how digital assets are gaining traction in response to economic uncertainties.

Blockchain organization and infrastructure

Also, the report reveals that by the close of 2022, Vietnam proudly boasts over 200 active blockchain projects spanning diverse fields. Additionally, two officially recognized legal entities have surfaced in Vietnam:

– The Vietnam Blockchain Union (VBU), established by the Vietnam Digital Communications Association (VDCA), officially launched on April 21, 2022.

– The Vietnam Blockchain Association (VBA), was founded a day later, in accordance with Decision No. 343/QD-BNV issued by the Ministry of Home Affairs. 

The report mentions that Vietnam’s blockchain infrastructure is experiencing rapid growth, marked by 8 significant projects making strides. 

Key features include Aura Network’s $9 million funding secured from Republic Crypto, Hashed, and Coin98 Ventures; the acquisition of TomoChain by Coin98 Finance; and the mainnet launch of Remitano Network backed by the established P2P Remitano exchange.

Others are Firebird’s dedication to a Web3 game platform on the blockchain and Verichains’ discovery of a Private Key Extraction Vulnerability with a potential impact of up to $8 billion.

Blockchain education in Vietnam

Another index that was tracked in the report is how blockchain education has increased around the company. Kyros says that Vietnam has witnessed a surge in the number of institutions offering coursework related to blockchain, with a total of 9 now offering specialized programs. 

Notable initiatives include FuniX’s 10-month in-depth IT training for aspiring Blockchain Developers and RMIT’s minor in Blockchain Enabled Business, along with a fintech-crypto hub established in partnership with Binance. 

Furthermore, students can delve into formal courses at the University of Technology (HCMUT), as well as explore a wide range of blockchain-related seminars and programs offered by other educational organizations.

Read also; 66yr-old Thai retiree falls victim to crypto scam, loses $568k

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