Experts discuss their experiences related to operating a centralised cryptocurrency exchange in Việt Nam. — VNS Photo Vũ Hoa

HÀ NỘI — Việt Nam is advancing a legal framework for digital assets by promoting the pilot implementation of a centralised cryptocurrency exchange (CEX), alongside the draft Law on Digital Technology Industry that is expected to be passed in May. These efforts demonstrate the Government's strong commitment to creating a clear regulatory environment for digital assets.

Chairman of the Việt Nam Blockchain Association (VBA) Phan Đức Trung made the statement at a workshop titled 'Sharing experiences in managing and operating a CEX' held in Hà Nội on Thursday, ahead of an anticipated April 1 Government Resolution on piloting a CEX.

This initiative follows the Prime Minister's Directive 05/CT-TTg issued on March 1, which calls for the Ministry of Finance to lead the development of regulations to support the healthy development of digital assets and cryptocurrencies markets.

At the workshop, experts and officials discussed the potential benefits of piloting a CEX while addressing concerns related to tax, user protection, exchange licensing and legal compliance. These concerns align with global frameworks, such as the Atlantic Council’s guidelines on anti-money laundering (AML) regulations, which are vital for removing Việt Nam from the Financial Action Task Force (FATF) Gray List.

Lieutenant Colonel Dương Đức Hùng, deputy head of the Counter-Terrorism Department at the Ministry of Public Security, said that while Việt Nam has not yet seen large-scale terrorist financing via cryptocurrency, the risk exists and is growing. He stressed the need for a comprehensive legal framework, inter-sectoral coordination and the use of advanced management tools to prevent illegal activities on unlicensed platforms.

"Authorities, especially the police force, need to strengthen investigation and strictly handle unlicensed trading floors, with high administrative fines and criminal prosecution if they are found to be related to terrorist financing or money laundering. At the same time, they need to publish the list of unlicensed trading floors to warn people and coordinate with internet service providers to block access to these platforms," Hùng said.

Director of the Academy of Cryptography Techniques under the Government Cipher Committee Hoàng Văn Thức noted the importance of establishing technical standards and regulations for cryptography in the crypto sector. He also stressed the need for security measures to ensure transparent and reliable operation of a CEX.

Tô Trần Hoà, deputy head of the Market Development Department at the State Securities Commission, said that the draft regulations for the CEX pilot are based on global best practices from markets like the US, Japan, Europe and the UAE.

“In particular, trading floors need to self-assess and select valuable, highly liquid assets to ensure the rights of investors," Hòa said.

Deputy Director of the Anti-Money Laundering Department at the State Bank of Việt Nam Nguyễn Thị Minh Thơ said that creating a legal framework for managing crypto exchanges presents complex challenges for risk management, given the anonymous, cross-border and decentralised nature of crypto assets. However, global experience shows that the cost of preventing money laundering and combatting terrorist financing is a significant burden for operators of crypto exchanges.

"The central bank has therefore proposed regulations requiring exchanges to implement stringent measures for preventing money laundering and combatting terrorist financing, in line with legal regulations and international standards. State authorities will continue to support businesses in meeting these obligations," she said.

VBA Chairman Trung said that the Government’s push to launch a pilot crypto asset exchange alongside the planned Law on Digital Technology Industry, expected to pass in May this year, demonstrates its strong commitment to building a legal framework for digital assets.

Experts believe Việt Nam's pilot programme for a digital asset exchange aligns with global trends and will serve as a powerful driver for the development of the blockchain industry and the economy.

"The legalisation of decentralised finance ensures the legitimacy of crypto assets, while fostering technological innovation and global integration. This will help Việt Nam tap into the rapidly growing crypto market and fulfil the Government’s commitment to anti-money laundering efforts," he said.

However, Trung also said that while these regulations are important, they could impose significant financial pressure on exchange operators, particularly smaller businesses with limited resources. Compliance costs, he explained, are a major consideration for exchanges, beyond just the costs of charter capital or licensing fees. — VNS