Last week, Dragon Capital announced a proposal for a pilot project to tokenize its exchange-traded fund (ETF) portfolio. If approved by regulators, investors could purchase fund certificates using various payment methods, including cryptocurrencies like bitcoin. This initiative has attracted considerable attention, especially in the context of bitcoin prices exceeding $120,000 per BTC globally and increasing acceptance of bitcoin payments in several countries.

Although digital assets have begun to receive legal recognition in Vietnam, the State Bank of Vietnam still does not accept virtual currencies as a legal means of payment. However, in an interview, economist Dr. Nguyen Tri Hieu stated that Vietnam must start exploring this issue, as the world is rapidly evolving with the advancement of technologies such as artificial intelligence (AI) and blockchain.

“Vietnam may need to consider allowing certain virtual currencies, such as bitcoin, to be accepted as a form of payment,” Dr. Hieu said. “Of course, bitcoin should not be treated as a national currency like the VND, but it could be allowed for specific types of transactions within the financial market.”

Dr. Hieu warned that the absence of clear regulations on digital currencies and transactions involving them forces these activities into the informal economy, making them difficult to monitor and opening the door to fraud, money laundering, and tax evasion.

According to various international organizations, annual digital asset transactions in Vietnam exceed $100 billion. Vietnam has also consistently ranked among the top five countries in the Global Crypto Adoption Index by Chainalysis for four consecutive years.

Formalizing the digital asset market must come with conditions.

Dr. Nguyen Tri Hieu emphasized that legal frameworks are essential to prevent digital asset transactions from taking place in the underground economy, posing risks of fraud, laundering, and tax evasion. To mitigate these challenges, the digital asset and cryptocurrency markets must be formalized. However, this should be done under several conditions, including a robust legal framework, mandatory use of regulated exchanges, and investor education programs on the risks associated with digital and crypto assets.

On the policy front, the Vietnamese government has recently shown a swift shift in perspective. The National Assembly has passed the Digital Technology Industry Law, officially recognizing digital and tokenized assets. The Prime Minister has instructed relevant ministries to complete and submit a draft decree on the pilot digital asset market by July 15, 2025.

This policy shift opens the door for investors. Experts even suggest that in the future, payments using bitcoin or stablecoins might be allowed within controlled environments.

Globally, the digital currency sector witnessed a historic milestone last week as the U.S. House of Representatives passed the GENIUS Act, establishing a legal framework for stablecoins (cryptocurrencies pegged to the USD), and forwarded it to President Donald Trump for signing.

Many countries worldwide have already approved bitcoin as a legal means of payment or are piloting it under controlled conditions.

A billion-dollar playground attracting global giants

Vietnam’s digital asset space is increasingly drawing major players, including domestic banks, securities firms, fund managers, tech companies, and global powerhouses.

Last week, Binance, the world’s largest cryptocurrency exchange, announced the “Blockchain for Vietnam” initiative. The goal is to position Vietnam as a new regional hub for blockchain technology and innovation. As part of this effort, Binance committed $1 million to raise blockchain awareness in Vietnam, promote blockchain applications in sectors where the country holds competitive advantages, and support local initiatives.

Richard Teng, CEO of Binance, noted that Vietnam has strong potential in the digital asset sector, thanks to its young population and a tech-savvy workforce. In fact, Vietnam ranks among the world’s top ten countries in terms of digital asset adoption.

Teng added that Vietnam’s move to officially legalize digital assets offers investors a new investment channel. He predicted that once a regulated crypto exchange is established, it will become one of the most popular investment platforms among young people.

Meanwhile, Will Ross, Marketing and Distribution Director of Dragon Capital Vietnam, argued that instead of focusing solely on traditional investment channels like gold, real estate, and stocks, regulators need to create legal frameworks that give investors confidence to participate in digital asset markets.

Currently, numerous domestic and foreign investors are expressing interest in developing Vietnam’s digital asset infrastructure and ecosystem. These include SSID, Tether, IDGX, U2U Network, Amazon Web Services (AWS), Binance, Bybit, and BingX. Experts believe that once a digital asset exchange is operational, Vietnam will be able to attract substantial global capital. Digital assets and cryptocurrencies are poised to become standout investment channels, especially as real estate prices remain prohibitively high.

Dau Tu