The entity aiming to accelerate the adoption of blockchain technology and support cryptocurrency projects – the Vietnam Blockchain Union (VBU) – has reportedly seen the light of day. It was launched by the Vietnam Digital Communications Association (VDCA) in the capital Hanoi.
Vietnam has been gradually emerging as one of South-East Asia’s cryptocurrency hubs. A recent coverage reads that the authorities introduced the Vietnam Blockchain Union (VBU) – an organization that connects tech companies with crypto’s underlying technology. It also provides consultancy to people and entities part of the digital asset ecosystem.
The newly formed unit was formed by the Vietnam Digital Communications Association (VDCA). Its President Nguyen Minh Hong believes blockchain technology and Artificial Intelligence (AI) are key factors in the fourth industrial revolution:
“With the ability to share information and data transparency in real-time, sustainability, and with high security, blockchain has become one of the breakthrough technology trends with wide applicability in many sectors including finance, health, education, intellectual property, logistics, entertainment, and agriculture.”
Addressing the initiative was also Dang Minh Tuan – Chairman of the VBU. In his view, blockchain technology has the ability to turn Vietnam into a highly developed tech country.
Apart from all its functions, the unit will join forces with the nation’s authorities to design a comprehensive regulatory network for the local cryptocurrency industry.
Crypto Flourishes on Vietnamese Soil
It is safe to say that digital assets and blockchain technology are on the rise in Vietnam. According to a study conducted by Chainalysis, the country ranked first in cryptocurrency adoption in 2020. The research included 154 nations as Vietnam’s neighbors – Thailand and China – were placed both at the 12th position. The world’s leading economy – the USA – held 8th place.
Earlier this year, the Vietnamese Deputy Prime Minister – Le Minh Khai – instructed local agencies to impose rules on the domestic crypto market. The entities supposed to execute this were the country’s central bank and the Ministries of Finance, Justice, Information & Communications. Nonetheless, the Ministry of Finance was appointed to spearhead the project.
The upcoming regulation should oversee the management of cryptocurrencies by investors and exchanges, and it will be formed in accordance with Decision 1255. The latter is an order issued in 2017 by Vietnam’s Prime Minister, who urged for the implementation of rules in the world of crypto.