ASFRC unveils recommendations on legal framework for digital assets in Vietnam

The event, co-organized by the University of Economics Ho Chi Minh City (UEH) and ASFRC, showcased ASFRC’s 2026 policy recommendations under the theme ‘Legal Framework for Stablecoins in Asia: Focus on Vietnam.’

The announcement comes as major financial markets, including the United States and Hong Kong, advance key stablecoin legislation such as the GENIUS Act and the Stablecoins Bill, reflecting a global push for clearer rules on digital assets.

Stablecoins are a type of cryptocurrency designed to maintain price stability, typically backed by fiat currencies such as the U.S. dollar.

According to ASFRC, they could significantly reduce remittance costs and help small- and medium-sized enterprises engaged in cross-border trade overcome payment delays, high foreign exchange fees, and limited access to credit.

Their development is also expected to foster innovation in the banking sector, driving digital transformation and modernizing financial services.

Based on this assessment, ASFRC recommended that Vietnam develop a regulatory framework for stablecoins through a cautious, phased approach.

The council proposed prioritizing pilot programs for VND-pegged stablecoins issued by licensed entities, with full reserve backing and independent audits.

It also called for a complete ban on algorithmic stablecoins and restrictions on foreign-issued stablecoins that do not meet domestic regulatory standards when offered to retail investors.

ASFRC further warned of risks to monetary sovereignty, systemic vulnerabilities associated with ‘shadow banking,’ and money-laundering threats, emphasizing the need to strike a careful balance between financial innovation and stability.

According to the Institute of Business Research at UEH, the regulation of digital assets has become more pressing than ever in Vietnam, given that the country receives nearly US$20 billion in annual remittances and is developing its recently established international financial center.

Prof. Dr. Vo Xuan Vinh, dean of the institute, noted that ASFRC’s recommendations are intended to help policymakers stay one step ahead, facilitating the development of digital assets while safeguarding financial and monetary security.

He expressed hope that the evidence-based and objective analysis would serve as a useful reference for lawmakers as Vietnam continues to refine its legal framework for the digital economy.

Vinh added that the country has already introduced the 2025 Law on Digital Technology Industry, while the government has issued Resolution 05/2025 to pilot a crypto asset market, aiming to establish a legal framework for digital assets, attract investment, and manage associated risks.

ASFRC is an independent organization that brings together leading experts in economics and finance across the Asia-Pacific region.

With a global network of specialists, it is widely regarded as a reputable academic and policy forum, playing a significant role in shaping financial policy in the region.