by VBF 05/04/2025, 02:00

Ensuring Transparency and Efficiency in Crypto Asset Operations

With the rapid growth of crypto assets in the world and in Vietnam, our reporter interviewed Mr. Bui Hoang Hai, Vice Chairman of the State Securities Commission of Vietnam (SSC), on regulating and promoting these assets for a transparent, efficient financial market.

Mr. Bui Hoang Hai, Vice Chairman of the State Securities Commission of Vietnam (SSC)

Can you share the key viewpoints and goals of the sandbox resolution for cryptocurrency exchanges?

On March 3, 2025, Prime Minister Pham Minh Chinh chaired a meeting of the Government Standing Committee on completing a legal framework for managing and handling digital assets, virtual currencies, crypto assets and cryptocurrencies. Concluding the meeting, the Government Standing Committee assigned the Ministry of Finance to coordinate with relevant agencies to draft a resolution on sandbox application before applying them nationwide, promoting research and development of new technologies, encouraging innovation in Vietnam and fostering economic growth in line with global megatrends and practical domestic conditions. Based on Official Dispatch 22/CD-TTg dated March 9, 2025 of the Prime Minister and Notice 81/TB-VPCP dated March 6, 2025 of the Government Office, the Ministry of Finance submitted Document 64/TTr-BTC dated March 11, 2025 to the Government for a draft resolution on pilot issuance and trading of crypto assets.

How will the sandbox mechanism support the legal framework for digital asset management?

Crypto assets are being issued and traded at an increasingly rapid pace. The global growing popularity of crypto assets poses opportunities, challenges and risks to the stability of the financial system and the development of economies. Regulatory agencies in many countries are making efforts to build a legal framework to regulate and manage this market.

On that basis, the pilot application of the crypto asset market is suitable for practical conditions in Vietnam to create a flexible regulatory environment and quickly adapt to innovations within the regulatory and supervisory framework, thus supporting financing production and business development, developing the digital economy and promoting economic growth. The sandbox application of the crypto asset market on a limited scale, controlled and supervised by regulatory agencies, will quickly meet market needs while giving time to management agencies to develop appropriate practice-based policy mechanisms, and is the common approach of many countries. The uninterrupted, more diversified and complicated development of the crypto asset market poses many risks to investors and the financial market. Therefore, the pilot deployment allows authorities to thoroughly research and assess the feasibility and conditions for actual implementation, minimize illegal acts such as money laundering and terrorist financing, protect investors, and enable the development of a transparent, safe and sustainable financial market.

How should regulatory agencies coordinate to ensure that new policies on digital assets not only protect consumers but also promote innovation?

Vibrant and diverse activities relating to crypto assets are catching the attention of participants, presenting risks and affecting monetary, trade and security policies of some countries, including Vietnam. In that context, the Government aimed to build a crypto asset management framework to achieve an appropriate balance between promoting research and development of new technologies and encouraging innovations with ensuring the principles of efficiency, transparency and equality, along with suitability to Vietnam's reality.

Currently, the Government is allotting the Ministry of Finance to make a resolution on sandbox application of the crypto asset market in Vietnam to build a legal environment to support innovative activities concerning crypto assets while limiting negative social and economic impacts. On that basis, the Ministry of Finance submitted to the Government a draft resolution on pilot issuance and trading of crypto assets, which proposes a coordination mechanism of regulatory agencies such as the Ministry of Finance, the Ministry of Public Security and the State Bank to promote market activities while averting risks to financial security and ensuring stability for financial and monetary markets.

Thank you very much!

Crypto assets are a type of digital asset created and operated based on cryptography, distributed ledger technology or analog technology. According to the European Bank (EAB), crypto assets are not issued or guaranteed by central banks or government organizations. Crypto assets can be used as a medium of exchange, an investment purpose or access to goods and services.
Currently, crypto assets are often referred to as cryptocurrencies (coins), utility coins, security tokens, platform tokens, transactional tokens, payment tokens and governance tokens. Coins are used for cryptocurrencies with their own blockchain technology like Bitcoin or Ethereum. Tokens are a crypto asset that shares the blockchain with another cryptocurrency. But in general, crypto assets can be classified into three categories. Payment tokens are often referred to as virtual currencies and cryptocurrencies. This type of token is only used as a currency, as a payment intermediary that allows the purchase/sale of goods, services, investment and storage of value.
Investment tokens provide rights like the right to own off-chain assets such as real estate, equipment and businesses or the right to receive dividends and profits.
Utility tokens represent the right to a specific good or service, but are not accepted as payment for other goods or services.