Proposal to establish a digital asset and cryptocurrency exchange in a financial center, what do experts say?

(NLĐO) – Experimenting with establishing digital asset and cryptocurrency exchanges could create a legal framework for effective management, tax collection, and technological advancement…

This is the opinion of financial expert Phan Dung Khanh when speaking with a reporter from Nguoi Lao Dong newspaper regarding the Ministry of Planning and Investment's proposal to conduct controlled trials of fintech activities, including digital asset and cryptocurrency exchanges, in the soon-to-be-established financial centers in Ho Chi Minh City and Da Nang.

According to Mr. Phan Dung Khanh, piloting the opening of cryptocurrency and digital asset exchanges is necessary and aligns with the government's policy of "abandoning the mindset of banning what cannot be managed." This is especially important given Vietnam's current policy of applying technology and artificial intelligence (AI) to key economic development goals.

"Although there is no clear legal framework yet, according to statistics from several international financial organizations, Vietnam consistently ranks among the world's top digital asset owners. Now, if we create a legal framework and allow pilot trading platforms, we can effectively manage and collect taxes, as well as leverage technology for development. Especially, behind digital assets lies a whole world of technology applied to the economy and life," said Mr. Phan Dung Khanh.

According to experts, the Ministry of Planning and Investment 's proposal helps businesses avoid having to set up companies abroad, allows the State to collect revenue, and maximizes the benefits of technology. At the same time, bringing digital assets into a management framework will limit fraudulent activities such as using these currencies for scams and promote knowledge about financial technology.

Digital assets like Bitcoin do not yet have a clear legal framework in Vietnam.

According to Mr. Phan Dung Khanh, in Vietnam, only the Vietnamese Dong (VNĐ) is permitted for use in commerce and payments. Therefore, regulating digital currencies will prevent negative consequences such as exploitation and fraud involving digital assets by establishing illegal exchanges to entice and invite investors to participate…

To successfully implement a pilot model for cryptocurrency and digital asset exchanges, experts believe the state needs to play the role of "conductor" in its establishment and management.

Associate Professor Nguyen Huu Huan from the University of Economics Ho Chi Minh City stated that in the process of building an international financial center and piloting a digital asset exchange, this model needs to be established and managed by the state. He argued that allowing exchanges to be licensed to private organizations would make operation difficult. He believes that digital asset (crypto) exchanges must be managed by state agencies to ensure transparency, safety, and legitimacy.

"Recently, many fraudulent foreign exchange (forex) trading platforms have been illegally opened by some individuals who then entice investors to participate. Granting pilot licenses for this model to private organizations or businesses to establish and operate would be very risky," said Associate Professor Dr. Nguyen Huu Huan.

Experts also emphasized that the state should be the agency to establish this pilot digital asset exchange, with other market participants such as reputable and experienced international organizations, experts, and investors.

According to the government's plan, international and regional financial centers in Vietnam will be established in Ho Chi Minh City and Da Nang. In the draft proposal for a National Assembly resolution on the establishment of financial centers, the Ministry of Planning and Investment proposes a controlled testing (sandbox) policy for business models applying technology in the financial sector (fintech).

Accordingly, the Financial Center Management and Operation Committee will have the authority to license, manage, assess the impact, and manage risks within the fintech sandbox. The testing will include exchanges for assets and cryptocurrencies (digital assets, digital currencies).

Source: https://nld.com.vn/de-xuat-lap-san-giao-dich-tai-san-so-tien-so-tai-trung-tam-tai-chinh-chuyen-gia-noi-gi-196250110150533626.htm