Abstract

The Vietnamese market has consistently demonstrated impressive levels of grassroots adoption of cryptocurrencies and, therefore, is always a prospective market for cryptocurrency development. This is one of the driving factors behind the need for effective cryptocurrency regulation in the country, so that investors and consumers are properly protected. However, as is the case with all new elements of the economy, regulating cryptocurrencies is a delicate process of balancing between economic development and protection of parties with limited leverage. If laws are too strict, then the market momentum is stifled and an economic opportunity is missed. Conversely, if laws are too lax, then the market is poorly regulated and fraud may become widespread and cause severe damages. This article aims to demonstrate the overall Vietnamese position on cryptocurrency regulation, including how it is being executed and how it might be executed in the foreseeable future.