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.
Enter VBU
Vietnam has gradually become one of Southeast Asia’s cryptocurrency hubs. Recent coverage indicates that authorities have introduced the Vietnam Blockchain Union (VBU) – an organization that links tech companies to the underlying crypto technology. It also provides guidance to individuals and entities that are 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 transparency of data in real-time, sustainably and with high security, blockchain has become one of the game-changing technology trends with wide applicability in many industries 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.
Along with all of its functions, the unit will partner with national 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, Vietnam’s Deputy Prime Minister – Le Minh Khai – asked local agencies to impose rules on the national crypto market. The entities supposed to execute this were the country’s central bank and the ministries of finance, justice, information and communications. Nevertheless, the Ministry of Finance was appointed to lead 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.
