Cryptocurrency regulation in Vietnam
According to the Global Crypto Adoption Index, based on the calculation of the volume of crypto transactions and P2P trading, back in 2021, Vietnam became the world leader in the rate of acceptance of cryptocurrencies.
The Democratic Republic of Vietnam also ranks 5th in the world in terms of the number of cryptocurrency holders. About 20 million people in the country, which is approximately 20% of the population, actively use digital assets, follows from the data of the analytical company TripleA for 2022.
The paradox is that the State Bank of Vietnam prohibits citizens and organizations from issuing, placing and using cryptocurrency as a means of payment, for this violation there are fines of 150-200 million Vietnamese dong ($6.4-$8.5 thousand) or imprisonment up to 3 years.
In addition, since 2018, by decision of the Ministry of Industry and Trade of Vietnam, together with the Central Bank of the country, the import of equipment for crypto-mining is prohibited. As conceived by the authorities, this is one of the state measures to protect citizens from fraud.
Mining, ownership, trading and investing in cryptocurrencies are not prohibited in the country, but they are not completely legalized, i.e. crypto market participants cannot protect their interests in the legal field.
Taxation of transactions with digital assets is not formally presented in the regulatory framework, however, profits received from cryptocurrencies may be subject to income tax.
- Income tax of resident individuals outside of employment is levied at a progressive rate from 0.5% to 5%, non-residents - 1% to 5%.
- The income of legal entities is mainly taxed at a rate of 25%.
- VAT is levied on foreign crypto service providers that do not have a permanent establishment in Vietnam at a rate of 10%.
All Vietnamese cryptomats, of which there are about 10, are concentrated in the country's largest city in terms of population - Ho Chi Minh City.
Special licensing procedures in the field of circulation of crypto assets are not yet provided in the country. As a general rule, financial service providers must:
1. obtain a license from the Vietnam Securities Commission (SSC);
2. conduct the Know Your Customer (KYC) procedure and due diligence of clients (CDD);
3. comply with the principles of combating money laundering (AML) and the financing of terrorism (CFT).
In addition, in March, the Ministry of Digital Development and Communications, the Central Bank of Vietnam and the Ministry of Finance were entrusted with the development of a bill on the regulation of cryptocurrencies, regulators must submit the results of their work by the end of 2023.
Business representatives from the Vietnam Digital Communications Association (VDCA), together with the public sector, launched the Vietnam Blockchain Union (VBU) back in April 2022, designed to advise investors and help local crypto startups.
You can track the rate of cryptocurrencies, trade and earn on the KUNA platform.
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