Digital assets are now an indispensable choice

In the draft law on the digital technology industry presented to the National Assembly in November, the government addressed digital assets for the first time. According to the draft, these are intangible assets in the form of digital data, created, issued, stored, transferred and authenticated through digital technology.

Digital assets are now an indispensable choice, source: freepik.com

These assets are legally protected in accordance with civil, intellectual property and other related laws. Digital assets include security tokens, tokenized securities, payment tokens and assets with value and ownership rights as prescribed by law.

Phan Duc Trung, vice chairman of the Vietnam Blockchain Association, stated at a seminar on digital assets organized by the Ministry of Information and Communications and the association on December 6, that after many revisions, the Digital Technology Industry Law now has clear provides definitions of digital assets, but a distinction is made between digital assets and tokenized assets. These definitions are consistent with current legal frameworks and regulations in economies such as the US.

Trung claimed that the law’s entry into force in May 2025 would fill a critical gap in Vietnam’s digital transformation. “We already have a digital government, a digital economy, a digital society and digital citizens, so legalizing digital assets as the connecting link between these elements will help complete the overall picture of the digital transformation,” he said.

When digital assets are officially defined and regulated under the Digital Technology Industry Law, they will significantly contribute to protecting user rights, minimizing risks, promoting the digital economy, attracting investment, promoting innovation and strengthening Vietnam’s position on the world stage.

Mai Huy Tuan, CEO of SSI Digital, told VIR that the new law could lay the foundation for Vietnam to become a regional hub for digital assets by 2025.

However, Tuan acknowledged that Vietnam’s biggest challenge lies in its incomplete legal framework, which creates a lack of clarity and transparency, eroding investor and business confidence.

“The risks of cybersecurity and data breaches in digital asset transactions are significant, as criminal organizations can abuse anonymity to commit money laundering or fraud. In addition, the limited availability of quality personnel and the insufficient adaptability of government agencies to the rapid pace of technological development pose further challenges,” Tuan said.

To address these issues, he recommended setting up a regulatory sandbox for testing digital asset products and services in a controlled but innovation-friendly environment. The sandbox will enable Vietnamese technology and fintech companies to develop faster within a controlled legal framework, he said.

“To manage risks, the legal framework must set basic requirements for combating money laundering and combating the financing of terrorism. Companies participating in the sandbox must implement simple but effective e-verification procedures and immediately report suspicious transactions to regulators. Deploying monitoring technologies such as big data analytics and AI will increase fraud detection capabilities without disrupting business operations.”

Una Fu, country director of digital trading platform MEXC, stated that the potential new law was not only a positive signal for the financial sector, but also marked a milestone that would help Vietnam quickly adapt to financial trends.

“With strict management and protection of domestic user rights, more and more citizens and investors are gaining confidence in exploring and investing in digital assets, which already show exceptional growth potential, both now and in the future.”

Fu also noted that the development of digital assets promises significant changes for the financial and banking industries. “They will upgrade and expand their services by introducing new solutions such as digital asset custody, tokenized asset trading and asset ownership management. Furthermore, digital assets will emerge as a new asset class, complementing traditional forms such as stocks, bonds and real estate,” she said.

A clear legal framework is essential for borderless digital assets At the Vietnam Tech Impact Summit 2024 organized by securities firm SSI and FPT Corporation on December 3 in Hanoi, Nguyen Duy Hung, Chairman of SSI, highlighted the significant challenges facing Vietnam’s technology and digital asset sectors due to the lack of a clear regulatory framework .

Vietnam is becoming a hub for digital assets In the coming years, Vietnam is expected to become a second home for leading global technology companies and a cradle for digital assets.

Major risks for digital asset investors At the Vietnam Tech Impact Summit 2024 on November 3, experts said Vietnam was Asia’s most attractive technology destination and a promising country for digital assets. However, there are also risks for investors.