Cryptocurrency is now popular in Vietnam and many people can know it and use it for many different purposes. They can use it with the goal of making a profit from trading on the crypto market, they can use cryptocurrency in online purchasing and selling activities on international e-commerce platforms that allow the use of these currencies.
However, some parties or companies in Vietnam often use it for illegal activities. That’s bad news, however, we can believe that it opens the door to legal cryptocurrency field activities for developing their market and supporting the government to minimize the above actions and move closer to recognizing this currency.
*On September 20, in Hanoi, the Vietnam Banks Association (VNBA) and the Vietnam Blockchain Association jointly organized the conference "Regulations on preventing and combating money laundering and the role of preventing and combating money laundering in transactions". cryptocurrency epidemic", within the framework of implementing the Law on Prevention and Combat of Money Laundering.
Mr. Phan Duc Trung, Permanent Vice President of the Vietnam Blockchain Association, said that in Vietnam, cryptocurrency is an area without clear legal regulations while actual transaction volume ranks 15th in the world and the highest level of cryptocurrency adoption in the world.
In terms of internet access address, the most used platform for cryptocurrency trading by users in Vietnam is the Binance.com exchange with nearly 42 million visits from October 1st, 2021, to January 1st, October 2022. Vietnam ranks in the top 5 countries with the highest trading volume on Binance. The second-ranked platform is an exchange called Exness.com, with 21.89 million visits during the same time.
The advent of blockchain technology brings with it the risk of increasing financial crime and money laundering using high technology in a sophisticated, complex, and fast-paced manner. Most countries do not have a legal corridor to keep up with this change.
Up to now, only a few countries and territories have promptly issued legal regulations to prevent financial crimes using high technology and blockchain technology such as the European Union (EU) with its ethics - The Markets in Crypto-Assets (MiCA). However, it will not be until 2024 that MiCA will officially take effect.
Other dynamic economies such as the US, South Korea, Hong Kong (China), and the United Arab Emirates have also issued many regulations to increase transparency, ensure legal compliance and security safety for users while fulfilling AML/CFT (anti-money laundering/anti-terrorist financing) obligations.
In Vietnam, experts say that due to the lack of a specific legal framework and a lack of processes and high-quality personnel in cryptocurrency and digital assets, even though the Law on Prevention of Money Laundering 2022 has taken effect from March 1, 2023, but credit institutions and state agencies are still confused in handling acts related to this new type of asset.*
The fact that Vietnam is a country that has not accepted nor issued appropriate policies for issues related to the crypto market is both a disadvantage and an opportunity for fintech companies to combine together to bring the best experience to users in Vietnam so that they do not have to suffer the loss of money due to fraudulent projects.
For example, Vietnamese companies can combine with several foreign fintech companies to convert cryptocurrency to fiat currency before reaching the final user in Vietnam (like a handshake 2 companies FinFan and Triple-A).
Moreover, the increasing number of people participating in Binance and Exness proves that their interest in and recognition of this type of cryptocurrency is huge.
The proof is that a small country like Vietnam leads the world in terms of cryptocurrency acceptance rate as well as being in the top 5 countries with the highest number of users trading on Binance.
If Vietnamese businesses in the fintech field provide suitable solutions to support users in withdrawing money from the above exchanges or receiving cash after a foreign party pays in crypto for an NFT item for painters or artists in Vietnam, there will be a very large market opened up.
Imagine if this extremely large amount of money from trading crypto as well as NFTs was exploited legally, it would greatly help increase sales and contribute huge amounts of money to the state budget for developing infrastructure as well as undertaking other meaningful social actions.
Furthermore, fintech businesses will increasingly improve their AML and KYC/KYB systems with their technological capabilities to be able to recognize money laundering criminals more easily and immediately notify competent authorities to handle such violations and prevent them from developing.
At the same time, previously, because there were no suitable solutions to prevent illegal acts, lawmakers in Vietnam did not have appropriate policies for the above issue.
These developments from fintech companies also contribute to making it easier for the State to provide appropriate legal corridors in the development and acceptance of these cryptocurrencies in Vietnam.