Vietnam, ranked among the top countries worldwide for cryptocurrency adoption, is launching a five-year pilot program introducing strict requirements for the crypto industry.
Vietnam’s Deputy Prime Minister Ho Duc Phoc signed a resolution enforcing a framework establishing rules for trading and issuance of crypto assets, the Government Electronic Newspaper of Vietnam reported on Tuesday.
Taking effect immediately, the pilot requires crypto transactions — from issuance to trading and payments — to be carried out in Vietnamese dong.
The resolution also specifies that issuers must be Vietnamese enterprises, registered as either limited liability companies or joint stock companies under the Law on Enterprises.
Vietnam bans issuance of fiat-backed crypto assets
The pilot establishes restrictions on the backing of crypto assets, requiring that they be issued exclusively on the basis of real assets. However, issuance of assets backed with fiat currencies and securities is not allowed.
“Crypto assets must be issued based on underlying assets that are real assets, excluding assets that are securities or fiat currencies,” the report reads.
Additionally, the resolution stipulates that crypto assets can only be offered and issued to foreign investors through crypto asset service providers (CASPs) licensed by the Ministry of Finance.
“The pilot implementation of the crypto asset market is carried out on the principles of caution, control, a roadmap suitable to practice, safety, transparency, efficiency, and protection of the rights and legitimate interests of organizations and individuals participating in the crypto asset market,” the report noted.
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