Vietnam to Ban Cryptocurrency to Fight Fraud

The Ministry of Finance of Vietnam has recently announced plans to either ban or regulate virtual assets by May 2025. This decision comes as part of the country’s efforts to combat money laundering. The authorities aim to exclude Vietnam from the “gray list” conducted by the Financial Action Task Force (FATF), an intergovernmental organization focused on fighting money laundering and terrorism financing.

As outlined in the National Plan of Vietnam, one of the key points involves developing a legislative framework for the regulation or prohibition of virtual assets and service providers dealing with virtual assets. The plan also emphasizes the importance of demonstrating the effectiveness of these regulations through measures to ensure compliance.

In addition to regulating virtual assets, the national plan to combat money laundering includes strengthening cooperation in extradition matters, organizing information and awareness campaigns for the private sector, and improving monitoring of local financial institutions.

Currently, Vietnam lacks specific legislation governing the ownership, trading, or use of virtual assets. Cryptocurrencies are not recognized as legal payment methods in the country, and transactions with cryptocurrencies typically occur through international trading platforms or direct agreements.

According to a report by Chainalysis on global cryptocurrency adoption, Vietnam ranks second in the world. Despite this, the country aims to establish itself as a hub for the semiconductor industry and other technological sectors by offering investment incentives.

Being on the FATF “gray list” may deter foreign investors who prioritize regulatory compliance. Vietnam has been urged by authorities for the past two years to regulate cryptocurrencies in order to improve its standing with potential investors.

Vietnam is not alone in its efforts to regulate virtual assets to meet FATF requirements. Last year, the Finance Minister of Pakistan stated that cryptocurrencies would not be legalized in the country for similar reasons.

/Reports, release notes, official announcements.