Hanoi, Vietnam – Vietnam’s Ministry of Finance on April 17 announced the plan for creating a testing model of internal cryptocurrency exchange in the country, which constitutes a major step towards formalizing the rapidly growing digital asset market. The plan came to light during the meeting held in Hanoi, with Finance Minister Nguyen Van Thang and Ben Zhou, co-founder of Bybit Technology Co. Ltd., which demonstrates the government’s concern to draw a regulatory framework for digital assets in the wake of massive investments in cryptocurrency in Vietnam.
The Protection of Investors and Potential Market Threats
According to a Google translation, Minister Thang has accentuated the immediacy of this action by pointing out that Vietnam ranks third worldwide in the number of cryptocurrency investors and their transaction volumes. He specifically pointed out the risks without regulation or control and the lack of protection framework for the investors. “In this case, the state cannot control it, hence, there must be some form of legal structure to management to protect the genuine rights of the investors,” Mr. Thang remarked which elucidates the primary reasoning for the proposed pilot exchange.
Strategic Pilot Model for Future Regulation
The proposed pilot model serves as an important strategic risk management framework, designed to precede the establishment of a more comprehensive regulatory structure for digital assets in Vietnam. According to Minister Thang’s remarks, the government is working on a resolution that would initiate the construction of this experimental crypto exchange. In his comments, he also noted the usefulness of Bybit’s participation in training sessions and in helping design risk control systems, exchange operation procedures, and legal models to offer support in developing sound legal frameworks. Nevertheless, he pointed out the need of studying and implementing thorough measures needed to ensure successful execution of the pilot.
Bybit’s Position and the Opportunity in Vietnam
In a meeting, Ben Zhou of Bybit, a global cryptocurrency exchange, underlined the company’s increasing interest in the Vietnamese market. While talking about the $1.5 billion cyberattack on the exchange, Zhou expressed that all investor assets were reimbursed and users and the market as a whole were not impacted. He noted that this was possible because Bybit remained transparent and kept a 1:1 asset backing policy. Zhou also called Vietnam blockchain development market as geopolitically important, appreciated the talented developers in the country, and the strong interest in cryptocurrency assets. “Bybit is very interested in the pilot model of building an exchange and is ready to cooperate with Vietnam in the framework to build a legal crypto market,” Zhou added, indicating the company’s plans to offer its support.
A Step Towards the Development of a Secure and Regulated Digital Economy
The rapid growth of Vietnam’s cryptocurrency trading activities has spurred government action to delineate policies that govern this space. This is aimed largely at protecting investors from possible dangers, while also encouraging a healthy and transparent market for the industry’s development. Zhou noted that Vietnam could benefit from Bybit’s sophisticated anti-money laundering technology and advanced transaction-monitoring systems to reduce the risks of cross-border crime using digital assets. Minister Thang stressed the importance of having these pilot projects first to thoroughly test the regulatory frameworks and requirements before trying to scale them up. He noted, however, that the successful completion of the pilot project is expected to help shape a robust and transparent system for trading cryptocurrencies and ultimately boost the growth of the digital economy in Vietnam.
