Recently, The State Securities Commission of Vietnam announced that it is exchanging information with Binance to collect more information about crypto currency and trading methods. Due to the announcement of The State Securities Commission of Vietnam in 2017 that it was assigned by the Ministry of Finance to preside over and coordinate with ministries and branches to research and develop regulations on crypto currency and virtual assets. But even the State Securities Commission of Vietnam has organized to collect opinions from relevant ministries, branches and units, but up to now the opinions on virtual assets and crypto currency are “not clear”. Therefore, the approach to building a legal framework still faces many difficulties and obstacles.
Why Binance ?
Binance is currently the world’s largest crypto currency exchange with an average daily trading volume of over 4 billion USD (at the same time this article was written), accounting for about 23% of the global market share, providing trading services for more than 180 countries and regions. It is understandable that the State Securities Commission of Vietnam approaches Binance, as the information provided by Binance can be very effective in building legal frameworks for crypto currency. At the same time, Binance is also facing many legal difficulties in many countries; The State Securities Commission of Vietnam will base on that to develop rules for crypto currency exchanges established in Vietnam in the future without falling into a situation of constant lawsuits and disputes. At the same time, learning how users exchange crypto currency on Binance can help the State Securities Commission of Vietnam to develop legal regulations to protect users and community principles in the field of crypto currency.
Vietnam takes the issue of crypto currency seriously.
A leader of the State Securities Commission of Vietnam emphasized that crypto currency is a relatively sensitive field compared to normal socio-economic management activities, especially in crime prevention activities, which require extreme caution in research methods. For example, so far, the concepts of virtual assets and crypto currency are still unclear. There is no unified concept in the world on this issue, each country has different regulations making the application of international practices quite complicated.
The leaders of the State Securities Commission of Vietnam also stated that crypto currency and virtual assets are not a new issue, but a difficult one, with too much risk that requires a comprehensive assessment. Although there are some countries that recognize crypto currency and virtual assets also allowed to make transactions, it is still a difficult and complex issue for Vietnam due to the fact that Vietnamese legal frameworks have not recognized them as assets or a currency. Therefore, it is necessary to conduct a lot of careful research on this type of assets
Will Vietnam’s crypto currency market be promising ?
Vietnam is considered as a quite friendly country to crypto currency with a large number of crypto currency holders, however, the lack of regulations causes many crypto currency fraud cases to occur. Not long before the announcement of approaching Binance, the State Securities Commission of Vietnam issued warnings to investors who are participating in crypto currency transactions on applications and stock exchanges that have not been approved by this agency. This indicates that the State Securities Commission of Vietnam is working to create a safe and healthy market for its users to ensure that no one is involved in crypto currency fraud cases while the regulatory framework is still incomplete.
It can be seen that Vietnam will be a very potential crypto currency market with a huge number of users, but the lack of legal framework will still have a huge impact on investors as well as crypto currency service providers. With the continuous development of technology, crypto currency will play a great role in Vietnam’s economy, so the relevant legislation must be improved as soon as possible.