Name: Vu Hoang Dung
Student ID: 17110077 - Master of Public Policy – VJU
A two-page paper proposal consisting of the policy question to be addressed, preliminary
ideas/hypotheses to be examined, and relevant sources of information/reference.
Problem: The legal problem of Bitcoin and suggestions for Bitcoin management policies in
Nowadays, Bitcoin users in Vietnam included Vietnam-traders, exchanges, and merchants who
accept payments in Bitcoins have grown rapidly. In this situation, they will face a number of risks
in using Bitcoin such as legitimacy, price fluctuations, trust, security, and consumer protection.
Besides that, recently, many investors have suffered property losses when participating in
According to an October 30th statement1 in 2017, the State Bank of Vietnam (SBV) said that
Bitcoin is not a "lawful means of payment" in the country, and the "issuance, supply, use of
Bitcoin and other similar virtual currency as a means of payment is prohibited
Authority: Bitcoin has gained wide acceptance around the world, the reason for these solutions
is to protect the interests of the state bank in issuing money and regulating monetary policy. In
addition, it also prevents money laundering, delinquency, and social harm. As can be seen, this
is a temporary policy issued by the central bank to limit the rapid development of Bitcoin in the
Goals: Vietnam government need to provide policy implications to legitimize Bitcoin in the
current Vietnamese context. These policies not only will benefit and protect Bitcoin users but
also help to promote the development of Bitcoin “innovation clusters” in Vietnam.
Approach: Virtual currency can be considered as a commodity, asset, investment channel or
means of payment. However, due to lack of specific regulations, the Government now
approaches Bitcoin as a means of payment.
Ideal for action: According to the scheme, in Vietnam, the Prime Minister assigned the Ministry
of Justice to take the main responsibility and coordinate with the State Bank, the Ministry of
Information and Communications, the Ministry of Public Security, the Ministry of Industry and
Trade, the Ministry of Finance to review the current legal framework. Then, the Ministry of
Justice assessed comprehensively the current situation in order to propose the Government to
resolve as well as amend the law on electronic money accordingly.
The report assessing the current situation to revise the legal framework needs to be completed
before August 2015 and by the end of 2018 must develop legal documents on virtual property.
At the same time, to June 2019, it was necessary to complete the proposal for a legal
framework on taxes on virtual property. In addition, recommendations for the prevention of
violations related to Bitcoin were also completed by the Government by September 2016.
Reality check: At the moment, we do not know what is going to happen to Bitcoin, the bubble
may break and a financial crisis will spread throughout the system. Meanwhile, Vietnam will also
be affected because nowadays, according to Similarweb.com, Vietnam's traffic on some Bitcoin
exchanges is always in the top five along with countries like the US, Russia and Japan.
The legality of Bitcoin needs to be addressed at the national level in the form of a long-term
strategy for changing payment methods, accessing new technologies and integrating into the
Real action: After reviewing and synthesized a number of documents, based on environment
impact assessment, social impact assessment, this paper will make some suggestions on the
policy for legitimizing Bitcoin and managing of Bitcoin in Vietnam.
Recognize Bitcoin and Bitcoin Advocates & Stakeholders (Bitcoin’s users, Government,
Regulate Bitcoin Market and businesses
Vietnam government should help to stabilize the currency by maintaining a reserve of
Policy transfer: Firstly, Vietnam need to learn and consider the mode of issuance,
operation mechanism, impact factors, modes, methods, and behavior. Secondly, Bitcoin
can be considered as money in a specific community but only in this community. Thirdly,
since virtual currency can be a scam to the community, we need to guide the population,
equipped with knowledge or even ban capital raising activities with virtual currency as in
China. Finally, in some developed countries, Machine Learning, Artificial Intelligence,
and blockchain technology are the subjects of general education.
Indicators: Some indicators can be used to analyze such as Bitcoin trading volume in Vietnam;
Number of investors, use of services related to virtual currency; The amount of tax collected
from the virtual currency transaction, Number of businesses accept virtual money in payment,
the number of blockchain related projects in Vietnam.
Situations: Many countries, including Japan, Korea, China, the United Kingdom, and the United
States, are improving the regulations on virtual currency management. The Government of
Vietnam is introducing new regulations in advance of current technology development.
Results: Bitcoin is just the beginning of new technologies and is becoming more popular, stable
and convenient. In the future with the blockchain platform, Bitcoin will impact all areas of
finance, banking, healthcare and education and so on.