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Vietnam Crypto Regulations Scheduled for End of January

Announcement represents a significant increase in pace

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Vietnamese Deputy Prime Minister Vuong Dinh Hue has given the Ministry of Justice the hurry-up. The framework for cryptocurrency regulations will now be submitted to the ministry at the end of January.

Regulations are expected to relate primarily to tax. It is possible that there will be a definitive decision as to how Bitcoin and its derivatives will be classified in Vietnam from now on. Of course, depending on whether they are seen as assets, currencies or something else will depend on their tax status, and therefore how much investors and companies will have to pay.

Rapid Movement

The announcement represents a rapid step forward for the Vietnamese government. Back in October 2017, when they declared all cryptocurrency use illegal within Vietnam, there was accompanying hope that guidelines for use that would supersede the ban would come into play at some point in 2019. However, the recent transformation of Bticoin into a mainstream commodity has triggered the need for swifter implementation. Whether or not January is a realistic time frame for anything to be rolled out or not, remains to be seen, but one thing is for sure: Vietnamese investors will not have long to wait before being able to recommence trading, albeit under taxed regulation.

In a Wider Context

When you look at Vietnam in the context of East Asia, they are not doing anything particularly radical. China, South Korea and Japan have all experimented with freedom and the concept of blanket bans. However, all the countries in East Asia seem to be settling on the concept a regulated truce with crypto. And seeing as East Asia represents an enormous chunk of the world’s crypto-market, it wouldn’t be surprising if other powerful regions soon follow suit.

Image Credit: Deposit Photos

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