Trade and store crypto
Can I trade Bitcoin and cryptocurrency in Vietnam?
Introduction to Bitcoin and crypto trading in Vietnam
Vietnam, like the Philippines and Taiwan, often gains wide publicity as an unstoppable crypto hotspot, but when analyzed in wider terms of its crypto credentials has little else to offer. There is no government strategy or legal framework, which is what marks our ranking leaders apart from other countries. This may soon change, however, and the Vietnamese Deputy Prime Minister, Le Minh Khai, is driving forward a regulatory framework for cryptocurrency within Vietnam that has yet to be clarified. Source https://cointelegraph.com/news/vietnam-s-prime-minister-calls-for-crypto-regulation-report. Crypto ownership is very high – between 5 and 9% of the population – and the country has a high score for the number of blockchain organizations. Clear regulation, when it comes, may drive a more cohesive crypto-economy within Vietnam. Also in the pipeline is further assessment for a central bank-issued digital currency to be conducted by the State Bank of Vietnam. Much depends on the changing worldview of cryptocurrencies and their trading of them following the fallout from the FTX debacle.
Bitcoin and cryptocurrency trading in Vietnam
The crypto economy in Vietnam has been booming, along with other Asian countries whose populations have taken crypto to heart. In Vietnam, using cryptocurrencies to make purchases is illegal, but they are still actively bought, putting Vietnam high on the list of countries with a significant number of people holding it as an investment. Finding places to spend it, therefore, is not easy and despite the government’s recent volte-face and its recent initiatives centered on studying and trialing cryptocurrency, crypto is not legal tender.
Crypto trading & crypto law in Vietnam
Vietnam’s government has moved from a position of opposition to acceptance of cryptocurrency – at least theoretically – perhaps bowing to the huge demand for crypto by its population. The central bank is piloting a cryptocurrency implementation program in order to explore the pros and cons of virtual assets in order to better legislate for and regulate them. The country appears to be comfortable with increasing the volume of cashless payments and sees this form of usage as an irreversible trend, especially for users who may not have bank accounts.
Paying taxes on my crypto trading in Vietnam
Vietnamese pay taxes just like anybody else, and there are many complex classifications. But with crypto not considered an asset, taxing it creates problems. Defining crypto and regulating it over the numerous exchanges now operating in the country is the aim – without suppressing new business opportunities for entrepreneurs. The long-term benefit to the country of clear regulation is, of course, reaping taxation through the trade of cryptocurrency. Exchanges previously trading tax-free, may fall within the scope of corporate or personal income tax so for many resident crypto investors it’s very much ‘watch this space’ time.
As we mentioned elsewhere, tax relief doesn’t really come into it as there are no clear taxation laws applying to crypto in Vietnam. Buying, selling, holding, and investing are legal, but purchasing services and products is not.
Vietnam crypto mining
Thinking of mining crypto? It’s a highly technical and expensive activity at the best of times. In Vietnam, formerly a major centre for mining bitcoins, the recent rise of Bitcoin’s price has perked up the mining boom in the country. The need for vast amounts of energy to perpetuate crypto mining, and the cost of equipment to do it, apparently is outweighed by the sharp price increases. In this still unregulated country, mining has yet to see specific laws to monitor and legislate for it.
To date, cryptocurrencies such as Bitcoin are not excluded from investment in Vietnam so it’s feasible that the investment industry will also include retirement planning. Most institutions will steer clear due to price volatility, but any investment plan would probably carry higher fees due to the higher risks involved.
Vietnam’s financial outlook on Bitcoin and the crypto economy
A huge crypto research program is underway in Vietnam after Vietnam’s Ministry of Finance initiated an in-depth study of cryptocurrencies, with a view to achieving legislative reform for the industry. With much about crypto still illegal – such as buying products and services with it – it is no surprise that the financial establishment is looking for guidance. However, as yet the conclusions of the study and any proposals and recommendations are not forthcoming. We hate to say it again but..watch this space.
Vietnam and Defi, the latest developments
Vietnam has long held a negative view of crypto but is changing rapidly. The government has decided it cannot ignore blockchain technology and the cryptocurrency mining and trading frenzy that has taken off during the coronavirus pandemic as people out of work or stuck at home seek new sources of income. The government is looking at ways to harness the trend towards digital assets and regulate the new technology rather than leave it to decentralized software and private enterprise. Needless to say, Decentralised Finance (Defi) is something of a non-starter and there appears to be little debate on its merits or otherwise.