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. The Vietnam Digital Communications Association (VDCA), in Hanoi, launched it.
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 offers consultancy services to entities and individuals that are part the digital asset ecosystem.
Vietnam Digital Communications Association (VDCA) created the new unit. Nguyen Minh Hong is the president of this unit. He believes that artificial intelligence (AI) and blockchain technology are key components 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. He believes that blockchain technology can transform Vietnam into a high-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.
Vietnamese Soil is where Crypto thrives
It is clear that digital assets are on the rise and blockchain technology is being used in Vietnam. Chainalysis’s 2020 study found that Vietnam ranked first for cryptocurrency adoption. 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. However, the Ministry of Finance was chosen to lead the project.
The regulation will govern the management of cryptocurrency by exchanges and investors. It will be based on 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.