Vietnam is a country where regulators are well behind the curve when it comes to electronic forms of money. With no regulation in place to address fintech and Bitcoin, some things will need to change. Right now, the relevant ministries are working hard on a proposal that will improve the legal framework about virtual money, Bitcoin, and virtual properties.
Vietnam Wants To Give Bitcoin A Legal Aspect In Some Way
The first thought coming to mind for Vietnamese politicians is how cryptocurrencies can be used for money laundering. Over the past few years, we have seen similar results in other countries around the world. Interestingly enough, no region is looking to ban Bitcoin but instead, seeks to legitimize it through a new legal framework.
Vietnam falls into the same category, as its ministries are looking to adapt the current legal framework. With the adoption rate of cryptocurrency growing at an accelerated pace, now is the time to pay attention to what these currencies can bring to the table. In fact, the government feels Bitcoin can attract new investors to the country, even though there are obvious tax evasion concerns.
The country suffers from a lack of virtual currency regulation, but that situation will come to change very soon. However, such a regulatory framework will not be without caveats, as changing the law will also risk destabilization of the economy. Proper guidelines need to be drafted, and industry experts in the region will need to join forces so a viable framework can be created.
Vietnam acknowledges they are behind the curve when it comes to defining virtual money and how it can be used. Bitcoin, in particular, is an interesting case, as there is no central authority or government which can control things. In fact, banning Bitcoin would be a moot effort, as one cannot ban what one does not control.
In this day and age, electronic payments are becoming the new norm in Vietnam, with over 2.2 million electronic wallets being used around the country. Bitcoin and other types of virtual money would bring more competition to this market, and new jobs can be created in the long run. Right now, virtual currencies are prohibited from being used in the e-commerce business, but that may come to change over the coming months.
Bringing Bitcoin into the framework of virtual money will be quite challenging, to say the least. It is evident the government wants to exert some control over how cryptocurrency is used, but they will have quite a few challenges ahead of them. Taxation of Bitcoin in Vietnam is not out of the question, assuming the government every legalizes the usage.
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