Bitcoin and the cryptocurrency problem: how to manage it effectively?

In the same vein, Dr Pham Nguyen Anh Huy, Senior Lecturer in Finance and Co-founder of the Fintech-Crypto Centre at RMIT University, observed that a tightly managed sandbox for cryptocurrency trading could offer valuable insights and unlock the benefits of digital finance—provided it is carefully overseen with well-defined safeguards.

“By narrowing the scope and scale of activity within the sandbox, regulators are able to observe market behaviours, identify weaknesses, and shape informed policy responses—without placing the wider financial system at undue risk,” he said.

He added that such a controlled setting allows both regulators and financial bodies to explore emerging technologies with access to real-time transactional data and user behaviour. This experiential knowledge could pave the way for more flexible, intelligent regulation—balancing investor security with the imperative to innovate.

First, the government needs to establish a clear legal and regulatory framework. For instance, it must clearly define what qualifies as a crypto asset, token or cryptocurrency. These definitions are essential to determine which regulations will apply within the sandbox environment and to ensure that all stakeholders are treated with consistency.

“The government must also introduce standards for licensed service providers and require that participants strictly follow established protocols for anti-money laundering (AML) and combating the financing of terrorism (CFT),” the expert advised.

Following this, a sandbox environment could be introduced, enabling fintech firms to trial cryptocurrency-related products under close regulatory supervision.

Participation criteria should be carefully designed, including clear timeframes for the pilot programme. Real-time monitoring tools will be vital for collecting data, analysing impact, and evaluating consumer outcomes and potential systemic risks.

“The government may permit one or two leading centralised cryptocurrency exchanges to operate within financial hubs. These platforms would be expected to comply with all relevant regulations and supply information necessary for regulatory oversight, such as reports on transactions over $5,000 and data required for tax purposes,” he suggested.

While the regulation of crypto asset and cryptocurrency transactions could yield significant benefits for the economy, experts agree that establishing an effective legal framework remains a complex undertaking—even for countries with well-developed financial systems.

Associate Professor Nguyen Thanh Binh acknowledged the challenge, noting that crafting a comprehensive legal framework is far from straightforward. As the field evolves rapidly, regulators must remain adaptable. However, he believes that a majority of transactions and users can still be brought within regulatory scope, while allowing innovative activities room to grow.

In his view, even though blockchain technology is decentralised, the majority of users still depend on centralised intermediaries—cryptocurrency exchanges—for buying and selling. These intermediaries manage large volumes of customer assets, making regulation essential. Proper oversight could prevent security incidents, reduce the risk of fraud, and mitigate financial crimes such as money laundering.

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By focusing on centralised exchanges, authorities gain the ability to observe and manage the majority of crypto asset transactions with greater precision.

Deputy Minister of Finance Nguyen Duc Chi also recognised the complexity of the issue, noting that crypto assets and cryptocurrencies pose challenges not only for Vietnam but for governments across the globe. Many nations remain in the research stage, each developing distinct legal strategies for overseeing crypto-related activities.

In Vietnam, both the Government and the Prime Minister have tasked ministries and relevant departments with designing a regulatory framework for the sector. “This March, the Ministry of Finance will present a report to the Government recommending the issuance of a resolution that would allow for a pilot programme to develop and operate a cryptocurrency exchange. This will give Vietnamese institutional and individual investors a legitimate platform to trade, invest, and transact,” said the Deputy Minister. He added that the exchange would be supervised and operated by enterprises officially licensed by the State, ensuring that the legal rights of all participants are protected.

Furthermore, the Ministry of Finance is collaborating with other agencies to draft rules that would permit domestic enterprises and organisations to issue crypto assets. This initiative is aimed at attracting capital for business and development, keeping Vietnam aligned with global trends in digital finance.

Alongside efforts to shape clear regulations on exchange licensing, tax collection, anti-money laundering, and countering terrorist financing, Ms Gracy Chen, CEO of Bitget, maintains that any legal framework must strike a careful balance—supporting innovation in technology while ensuring investor protection.

Beyond establishing rules, regulators must also step up oversight of cryptocurrency exchanges and service providers to ensure they remain compliant with the law. Where breaches occur, decisive action is essential.

Public education should also form part of this broader strategy. Investor understanding can be improved through awareness campaigns that explore both the risks and potential of crypto assets. Clear, credible information on the market must also be readily available.

Dr Pham Nguyen Anh Huy noted that the Government should create targeted risk assessment and management plans tailored to this evolving space.

To mitigate risk, regulators may consider practical steps such as limiting transaction volumes or applying regional restrictions. Establishing a dedicated crisis management team for the crypto sector could also help ensure swift, effective responses should challenges arise.

Given the pace of growth in the cryptocurrency sector, Mr Huy warned that prolonged delays in launching a testing framework may leave Vietnam lagging behind its peers.

In addition, he pointed out that Vietnam is currently missing out on significant tax revenue from these digital transactions. Introducing a pilot programme could help establish the foundation for future taxation of cryptocurrency and related assets.

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