Why are domestic investors not allowed to invest in crypto assets?

A representative of the Securities Commission said that in the initial phase, Vietnam only allows the offering and issuance of crypto assets to foreign investors, both to attract international capital and to have time to complete the legal framework and raise public awareness.

Mr. To Tran Hoa - Deputy Head of the Securities Market Development Department, State Securities Commission - Photo: BTC

The appeal of the crypto asset market lies not in its immediate opening?

At the seminar "Crypto assets: From gray area to pilot - Solutions to ensure transparency, safety and efficiency" organized by Tien Phong newspaper on November 6, Mr. To Tran Hoa - Deputy Head of the Securities Market Development Department, State Securities Commission - answered the question of why domestic investors are not currently allowed to invest in crypto assets.

Previously, Article 6 of Resolution 05 of the Government stipulated that "crypto assets can only be offered and issued to foreign investors".

Regarding this issue, Mr. Hoa said that the participants in drafting the current policy came from a cautious spirit to protect investors and control risks in the early stages.

Although there are 19-21 million accounts related to digital assets in Vietnam, this number does not accurately reflect the actual scale. The reason, according to Mr. Hoa, is that many people own multiple accounts. More importantly, the understanding capacity of Vietnamese investors is still low, while many digital asset frauds have occurred in the past.

"Money is transferred in a split second. Recovering or compensating is almost impossible if fraud occurs. Therefore, opening the market needs to be accompanied by effective monitoring and handling capabilities," Mr. Hoa said.

Accordingly, in the first phase, Vietnam will only allow the offering and issuance of crypto assets to foreign investors, both to attract international capital and to have time to complete the legal framework and raise public awareness. At the same time, management agencies will develop training, communication and financial literacy programs for people, helping them understand their rights, risks and responsibilities when participating in the market.

He also said the market's attractiveness does not lie in its immediate opening, but in product quality, liquidity, information transparency and service safety.

Once the first crypto asset service providers are licensed, individual investors who already own crypto assets overseas can open trading accounts with these institutions domestically. This process will fully comply with regulations on identity verification (KYC), customer authentication and the use of personal bank accounts.

In addition, organizations providing crypto-asset services are required to establish a complaint handling process and transparent transaction contracts that clearly define the rights and obligations of investors. The regulatory agency requires these organizations to clearly and fully explain to customers before signing, ensuring that investors clearly understand the risks and conditions of transactions.

The Ministry of Public Security will participate in management.

Regarding the management mechanism, Mr. Hoa said that there will be three agencies coordinating to manage the crypto asset market: the Ministry of Finance (managing the activities of service and transaction providers), the State Bank (managing cash flow and means of payment) and the Ministry of Public Security (in charge of preventing fraud and high-tech crimes).

At the seminar, Mr. Phan Duc Trung - Chairman of the Vietnam Blockchain and Digital Asset Association - said that risks exist but are not scary if we understand and manage them.

According to international statistics, the rate of blockchain-related financial crimes has decreased from 0.4-0.5% to 0.15% in 2024, while the total transaction value is still increasing strongly.

This proves that if properly managed, crypto assets do not increase risks to the financial system, but on the contrary, help make cash flow transparent, according to Mr. Trung.

In fact, banks today can detect and prevent money laundering through digital assets much easier than traditional transactions, because every transaction on the blockchain leaves a clear trace.

In general, Mr. Trung believes that the opportunities for Vietnam are huge. With about 20 million people owning crypto assets, our domestic market is not small. But most of this money is still "wandering" on international exchanges, out of supervision and not contributing to the economy.

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BINH KHANH

Source: https://tuoitre.vn/vi-sao-nha-dau-tu-trong-nuoc-chua-duoc-tham-gia-dau-tu-tai-san-ma-hoa-20251106204629396.htm