Finance groups in digital asset push

With five out of seven applications passing the Ministry of Finance’s initial screening, banks and securities firms are taking the lead in Vietnam’s pilot crypto exchange, signalling a shift towards a more regulated and transparent digital asset market.

- By Oanh Do

At a seminar on digital asset exchanges held at the end of March in Hanoi, Colonel Hoang Ngoc Bach, representing the Department of Cybersecurity and High-Tech Crime Prevention and Control under the Ministry of Public Security, said legal loopholes are the reason why most fraud cases involving digital assets face difficulties in verification, tracing, and asset recovery. Stolen funds are often transferred through international exchanges, outside the control of regulatory agencies.

Furthermore, the high degree of anonymity in cyberspace also creates opportunities for many fake platforms and fraudulent schemes to emerge, soliciting investments and then misappropriating assets, making it difficult to track down and prosecute these perpetrators.

“Previously, when participating in foreign exchanges, people had to provide their national identity card, phone number, email address, and even bank account information. All this data was stored abroad, posing a risk of illegal exploitation and trading,” Bach said.

“Official exchanges will help minimise illegal activities, strengthen anti-money laundering and counter-terrorism financing efforts, and support Vietnam’s removal from the Financial Action Task Force’s grey list,” Bach added.