Vietnam is prone to see a rise in crypto regulation soon as a government-backed pro-crypto group, Vietnam Blockchain Union (VBU), a group that aims at increasing crypto adoption in the country, made its official debut this week.
The group aims to increase cooperation between government and private players over blockchain technology. As Vietnam’s crypto adoption grows, it will also assist the government in drafting rules over the space.
VBU Officially debuted this week
Local publication Vietnam Investment Review reported on Friday that the union officially launched this week in an event attended by representatives from several popular crypto players, including Binance.
The group’s advisory board is helmed by several government officials, including Deputy Minister of Information and Communications Nguyen Huy Dung. The meeting is chaired by Dang Minh Tuan, director of CMC Applied Research Institute.
The Vietnam Digital Media Association, under the Ministry of Information and Communications, founded the union in late 2021.
Vietnam’s Ministry of finance is also collaborating with the central bank on passing comprehensive crypto regulations.
Vietnam a cryptocurrency hotspot
Crypto adoption in the Southeast Asian country has risen at an unparalleled 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 recognize cryptocurrency as legal tender, it does not impose any limitations on crypto asset ownership or trading. However, Vietnam lacks overarching crypto regulation, something several government bodies are now trying to establish.
According to research firm Triple A, about 6.1% of Vietnam’s population holds crypto. Several other Southeast Asian countries, like Thailand and South Korea, have embraced crypto adoption this year.
Crypto was a major factor in the recent presidential elections in South Korea, with both contenders promising crypto-friendly regulations.