Vietnam to develop legal framework on virtual assets

Vietnam will develop a legal framework to prohibit or regulate virtual assets and virtual asset service providers, which is expected to be completed by May 2025.

This is one among 17 specific actions outlined in a national action plan issued recently by the government to implement its commitment to preventing and combating money laundering, terrorist financing, and the financing of the proliferation of weapons of mass destruction.

The goal is to realize the National Action Plan to implement the government’s commitment with the Financial Action Task Force (FATF), so as to soon remove the country from the Increased Monitoring List (Grey List) on the basis of ensuring maximum national interest.

Other actions include demonstrating that relevant authorities have improved their understanding of money laundering / terrorist financing risks and are taking steps to mitigate these risks through the implementation of strategies and policies, and establishing effective cooperation, coordination, and communications between relevant agencies.

Formal cooperation (multilateral cooperation in extradition and legal assistance) and informal cooperation (of law enforcement agencies and Financial Intelligence Units) with foreign partners will be enhanced by providing constructive information and proactively seeking cooperation regarding criminals and their assets, and ensuring relevant authorities, including central agencies, are provided with appropriate resources to carry out international cooperation.

Law enforcement and prosecution agencies will prioritize parallel financial investigations and demonstrate a significant and sustainable increase in the number of money laundering investigations and prosecutions, consistent with Vietnam’s money laundering risk profile.