Vietnam Retail Investors Embrace Digital Assets with 1 in 5 Owning Cryptocurrency
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Loading... - Kulap Chaichana
- 21 Feb 2023
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Vietnam is making waves in the cryptocurrency world as it has become one of the largest markets for digital currencies. With a population of 99.607 million, the country is the 13th largest by population.
In ASEAN, Vietnam is second only to Thailand in cryptocurrency market size, with a yearly transaction value exceeding $100 million.
These statistics are further boosted by the fact that a recent study found that one in five people in Vietnam own cryptocurrencies. This firmly establishes the country as the cryptocurrency capital of the world.
Directive prohibiting the use of cryptocurrencies
In 2017, the government issued a directive prohibiting the use of cryptocurrencies for payments in the country. This effectively made it illegal for businesses to accept cryptocurrencies as a form of payment for goods and services.
However, individuals can still buy, sell, and hold cryptocurrencies for investment purposes. The government has regulated the cryptocurrency market to mitigate potential risks and ensure financial stability.
In March 2020, the Vietnamese Ministry of Finance announced that it would set up a committee to study and propose policies for managing virtual assets and cryptocurrencies.
The growing popularity of cryptocurrencies in Vietnam
The high rate of cryptocurrency adoption in Vietnam can be attributed to several factors, one of which is the absence of crypto taxes. Unlike in the United States and other major jurisdictions where cryptocurrency holdings are taxed, there are no such taxes in Vietnam.
This has made cryptocurrency an attractive investment option for individuals looking to diversify their portfolios and potentially earn high returns without paying additional taxes.
The Vietnamese government’s stance has also played a role in the growth of the cryptocurrency market. While the central bank has warned about the risks of cryptocurrencies, it has not taken any steps to ban or restrict their use. Read More…
