Vietnam ranks among the top for crypto adoption! Ministry of Justice: Virtual currencies will not be banned but regulatory legislation needs to be accelerated

This site (120btC.coM): Potential demographic dividend, strong economic growth, relatively low operating costs, and other favorable conditions have made Vietnam a gold mine treasure house in the eyes of all walks of life. But perhaps less people know that the Web3 industry is also developing very actively in Vietnam. There are even many opinions that Vietnam may become an important driving force for the next wave of cryptocurrency bull market.

Vietnam’s encryption adoption rate ranks among the best

According to the "Global Cryptocurrency Adoption Index" report released by blockchain data company Chainalysis, Vietnam has ranked first in encryption for two consecutive years in 2021 and 2022. Ranked first in currency adoption.

In the latest data released in September 2023, although Vietnam lost its first place and was overtaken by India and Nigeria, it still maintained an excellent result of third place. Currently, the Vietnamese market shows extremely high purchasing power and population adoption rate in terms of centralized services, DeFi and P2P transactions.

Hunter, a partner of Vietnamese encryption media BitouchNew, said: You can see people on the streets of Vietnam using black plastic bags in their hands to exchange Vietnamese Dong (VNT) for USDT... People can even use USDT to pay rent and living expenses.

In addition, according to a report released by the "Wall Street Journal" in October last year, the Vietnamese market has also been promoted to the top five countries in Binance's trading volume, surpassing the United Kingdom. It belongs to the Virgin Islands and Singapore, second only to the top three countries China, South Korea and Turkey.

Vietnam Ministry of Justice: Cryptocurrencies and virtual assets will not be banned

According to a report by Vietnamese media VnExpress this week, Cao Dang Dinh, deputy director of the Civil Law Department of the Ministry of Justice of Vietnam, said: "Vietnam will not ban Cryptocurrencies and virtual assets, but relevant regulations need to be formulated as soon as possible to standardize management.”

Dinh added that countries currently have different definitions and supervision methods for cryptocurrencies and virtual assets, and Vietnam has not yet formulated a specific regulation. Management Regulations. In view of the high risk of virtual assets being easily exploited by criminals, the legislative process needs to be accelerated.

It is understood that the Vietnamese government has instructed the country’s central bank to study cryptocurrencies and virtual assets to prevent money laundering risks. The Ministry of Finance has also been asked to develop a legal framework for virtual assets by May 2025.

What are the advantages of developing Web3 in Vietnam?

According to a research report released by W3CDAO at the end of last year, Vietnam has the following advantages in developing the Web3 industry:

1. First of all, in terms of cost, Vietnam can provide relatively low labor costs.

According to the Coin98Insights report, the average salary of blockchain personnel in Vietnam is low compared with the world. Taking HR positions as an example, the average salary of blockchain HR in Vietnam is US$30,000 per year, and in North America it is US$42,000. For the most important developer position at Web3 companies, managers earn an average monthly salary of $2,526.

2. Vietnam has a high penetration rate of mobile Internet, and the cost for users to learn Web3 is relatively low. As long as companies take appropriate incentive measures, they can attract these groups and gain an increase in users.

According to data, currently, there are more than 16.6 million cryptocurrency holders in Vietnam, accounting for one-fifth of the total population, of which 31% hold Bitcoin.

3. In terms of policy, at present, the Vietnamese government does not have a clear regulatory legal framework for cryptocurrency, so this type of asset trading is still in a gray middle zone. (Note: At present, it seems that the Vietnamese government will not directly ban the development of cryptocurrency, but will gradually establish a regulatory system, which may also help market popularization)

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