Vietnam’s Progress in Regulated Digital Asset Trading
Vietnam is making strides towards the establishment of a regulated digital asset trading platform, spurred by discussions held on April 17 in Hanoi. Finance Minister Nguyen Van Thang met with Ben Zhou, CEO of Bybit, a cryptocurrency exchange based in Dubai, to explore collaborative opportunities aimed at developing an official pilot program for crypto-asset trading in the country.
Collaboration and Support from Bybit
In an official release from the Ministry of Finance, the meeting was highlighted as a step forward in forming Vietnam’s pilot initiative, following government instructions for the ministry to create a resolution that would lay the groundwork for regulating the cryptocurrency sector. Ben Zhou expressed Bybit’s eagerness to assist Vietnam through sharing expertise in regulatory practices, risk management, and anti-money laundering protocols.
“The enthusiasm of numerous blockchain developers and investors keen to embrace innovative technology underscores the importance of establishing a stable and transparent legal framework,” remarked Zhou, acknowledging Vietnam’s significant potential for growth as the largest market for crypto trading in Southeast Asia.
Challenges and Legal Framework Necessity
The CEO also touched upon a recent security breach that affected Bybit, where roughly $1.5 billion was compromised through hacking. He reassured users that the exchange maintained uninterrupted operations and all affected clients were fully compensated, emphasizing Bybit’s commitment to a 1:1 asset backing policy that prevented investor losses.
Minister Thang welcomed Bybit’s initiative in collaborating with Vietnam, highlighting the surging interest in digital assets within the nation. He noted that Vietnamese investors now rank third worldwide in terms of transaction participation and volumes. He pointed out the challenges of unregulated transactions, stating,
“Without a formal regulatory framework, it becomes difficult to protect investors and exercise state oversight.”
Thang asserted the necessity of a legal structure to uphold investor rights and market integrity, explaining that the pilot trading floor will serve as an experimental environment to assess the risks and advantages of digital asset transactions before definitive regulations are implemented.
“This model will aid us in managing risks, directing legal proceedings, and fostering the digital economy,” he stated.
Bybit’s Focus on Core Offerings
The Finance Ministry expressed gratitude towards Bybit for its readiness to contribute to training, technology sharing, and the development of regulatory frameworks as Vietnam progresses in its crypto regulatory journey.
In a separate but related development, Bybit is reshaping its focus towards its core offerings as it backs Vietnam’s crypto trading endeavor. The exchange recently announced the termination of its NFT marketplace and a broader winding down of various Web3 services, set to conclude by May 31. Several products, including its Cloud Wallet and a suite of other services, will be eliminated, alongside the discontinuation of its Web3 Points loyalty program and related offerings.
Even amid these adjustments, Bybit is concentrating on aligning with its core business objectives, incorporating new features like Avalon’s Bitcoin yield product, allowing users to earn yields from institutional borrowing activities.
Institutional Interest in Vietnam’s Blockchain Sector
Moreover, CEO Ben Zhou recently engaged in discussions with SSI Securities CEO Nguyen Duy Hung. SSI has been increasingly involved in Vietnam’s blockchain sector, initiating a $200 million investment fund and forming partnerships with notable entities like Tether and KuCoin to bolster local Web3 ventures, reflecting the rising institutional interest in this burgeoning area.
