Vietnam is likely to see an increase in crypto regulation soon, as a government-backed pro-crypto group seeks to promote the space.
The Vietnam Blockchain Union (VBU), a group that aims to increase crypto adoption in the country, officially made its debut this week.
The group seeks to increase cooperation between the government and private players over blockchain technology. It will also help the government draft regulations over the space, as Vietnam’s crypto adoption steadily rises.
VBU officially launched this week
The union officially launched this week, in a ceremony attended by representatives from several popular crypto players, including Binance, local publication Vietnam Investment Review reported on Friday.
The group’s advisory board is helmed by several government officials, including Nguyen Huy Dung, Deputy Minister of Information and Communications. The union is chaired by Dang Minh Tuan, director at CMC Applied Research Institute.
The union was established in late-2021 by the Vietnam Digital Media Association, under the Ministry of Information and Communications.
Vietnam’s Ministry of Finance is also working with the central bank on passing comprehensive crypto regulation.
Vietnam a crypto hotspot
Crypto adoption in the southeast Asian country has accelerated at an unprecedented pace in the last two years. Vietnam ranked first on an index of countries leading crypto adoption, from blockchain analytics firm Chainalysis.
While the country does not accept crypto as legal tender, it has no restrictions on the holding and trade of crypto assets. But Vietnam also lacks overarching regulation for crypto, something several government agencies are currently working towards establishing.
According to data from research firm triple A, about 6.1% of Vietnam’s population holds crypto. Several other southeast Asian countries, such as Thailand and South Korea, have also leaned into crypto adoption this year.
Crypto was a major factor in South Korea’s recent Presidential elections, with both candidates promising crypto-friendly regulation.