Vietnam is home to a significant proportion of its population that engages with cryptocurrency. Approximately 17 percent of Vietnamese citizens have either used or currently possess crypto assets.
According to an article published by the Crypto Council for Innovation, Bitcoin is the predominant cryptocurrency utilized in Vietnam. The younger demographic, particularly those aged between 25 and 34, are most likely to own crypto assets. Analysts forecast that the use of cryptocurrency within the Vietnamese market will generate over $109.4 million in revenue. Despite this burgeoning trend, the Vietnamese government has not yet implemented specific regulations concerning cryptocurrency usage but continues to investigate the matter. In June 2023, Vietnam's Planning and Development Institute reviewed eight potentially applicable existing laws, revealing that there is currently no classification for crypto assets.
The article also suggests that a substantial portion of the Vietnamese population would support regulation on cryptocurrency. A Vietnam Cryptocurrency Market Report revealed that 75% of respondents expressed their desire for reform and regulation pertaining to cryptocurrency. Furthermore, it was found that 90% of investors in Vietnam have been involved with and learning about cryptocurrency for at least a year. The introduction of regulations on cryptocurrency could provide the government with an opportunity to boost revenue through taxation.
Financial institutions in Vietnam are prohibited from handling cryptocurrencies, resulting in these assets remaining untaxed within the country. Historically, there has been a lack of confidence among the Vietnamese population in their national currency, the dong. Prior to the advent of cryptocurrencies, many Vietnamese citizens held US dollars or tangible assets such as gold as a hedge against potential issues with their fiat currency. Additionally, a significant number of citizens lack access to traditional financial services, prompting them to seek alternative financing methods. The flexibility and accessibility offered by cryptocurrencies have made them an attractive option for these consumers.
