Vietnam proposes to open cryptocurrency exchange in 2025
Proposal to Open a Digital Currency Exchange: A New Step for Vietnam's Financial Center.
The Ministry of Planning and Investment has proposed testing a cryptocurrency exchange within the framework of financial centers in Ho Chi Minh City and Da Nang, expected to launch in 2025.
This proposal aims to make Vietnam an important financial destination in the region and the world.
Controlled Experimentation with Fintech
A draft resolution submitted to the National Assembly calls for the application of a controlled testing policy (sandbox) for financial services applying technology, including digital asset and cryptocurrency exchanges .
Accordingly, the Financial Center Management Committee will assume the authority to license, manage risks and evaluate the operations of units participating in this sandbox.
The Government will also develop detailed regulations on anti-money laundering, cybersecurity, and management of issuance and trading of digital assets.
At the same time, cryptocurrency mining will be controlled to minimize negative impacts on energy and the environment.
Opportunities and challenges in cryptocurrency management
Currently, Vietnam does not have a clear definition of cryptocurrency and digital assets, nor an official legal framework.
This has led many businesses in the industry to move operations to countries like Singapore, reducing their competitive advantage and losing tax revenue. For users, the lack of transparency poses a great risk in digital asset transactions.
However, Vietnam is one of the leading countries in digital asset ownership. According to the Vietnam Blockchain Association, in the period of 2021-2022, about 21% of the population owns this type of asset.
A report from Chainalysis also shows that the flow of digital assets into Vietnam in 2023 will reach 120 billion USD.
Outstanding incentives attract investment
To attract capital and technology, the Ministry of Planning and Investment proposed many preferential policies at the financial center.
Corporate tax: Priority projects enjoy a 10% tax rate throughout their life cycle. Other projects are subject to a 10% tax rate for 15 years, with a tax exemption for the first 4 years and a 50% tax reduction for the next 9 years.
Personal tax: Managers, experts and scientists working in the financial center are exempt from income tax until 2035 and reduced by 50% thereafter.
Advantages for foreign experts: Maximum support policy on immigration procedures, travel and residence.
Expectations shaping Vietnam's financial future
The financial center is expected to attract credit institutions, investment funds, exchanges and insurance companies to register as members.
These businesses will be allowed to operate in the centers without being bound by the provisions of the current Enterprise Law.
According to the Ministry of Planning and Investment, this policy is not only suitable for practice but also ensures effective management and operation of financial centers, creating a solid foundation for Vietnam to reach out to the global financial market.