Vietnam’s government just took measures to speed up the process of cryptocurrency regulation that may affect Bitcoin greatly. Hanoi’s officials have set a goal to have the framework in place by the end of this month. These planned amendments to the tax code will help the country tap into the proceeds from digital money and virtual properties.
This announcement was delivered by high-ranking government officials who were set on speeding up the process. Deputy Prime Minister Vuong Dinh Hue requested that the State Bank and the Ministry of Justice hurry to finish the legal framework and report back to the government. Vietnamese media has shared that the documents should be presented to the Council of Ministers by month’s end.
Amendments to the taxation laws will be primarily dealt with by the central bank of Vietnam. The details about set tax rates in regards to income from trading cryptocurrencies and mining have not been shared just yet.
Cryptocurrency has drawn much more attention during the past year across the globe, despite financial experts warning about the risks of investing in digital money. Yet, around the world, many officials are scrambling to figure out a way to take control of the new phenomenon, while also benefitting from it somehow.
This dilemma is what Vietnamese officials are trying to better understand. In November, a National Assembly hearing was held to discuss the issue further. The Governor of the State Bank of Vietnam, Le Minh Hung, explained that under current Vietnamese regulations, Bitcoin is not considered a legal tender that can be used for payments. But, Hung shared that, “from the perspective of treating it as an investment asset”, the SBV would co-operate with the justice ministry to “study the legal framework for managing” Bitcoin.
Aside from the legal framework for controlling Bitcoin, the finance ministry was also asked to complete a project on expanding the tax base of the non-state sector. Furthermore, the Ministry of Planning is working on an overview of the whole Vietnamese economy.
Vietnam’s reaction to the widespread use of cryptocurrency appears to be very similar to that of other countries such as China and South Korea.