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Vietnam’s Cryptocurrency Market Faces Rising Money Laundering Risks
The rapid growth of Vietnam’s cryptocurrency market has raised concerns about money laundering risks, experts warn. According to reports from reputable global organizations, the risk of money laundering in the field of cryptocurrency and digital assets is increasing globally.
The Growing Concerns
Vietnam ranks 15th in the world for cryptocurrency trading volume, with the total value of Vietnamese cryptocurrency transactions reaching $2021 billion in October alone, with illegal activities accounting for $10 million. This trend is expected to continue, with revenue from cryptocurrency exchanges in Vietnam projected to reach $109.4 million in 2023 and the number of cryptocurrency users expected to increase to 12.37 million by 2027.
The Risks of Money Laundering
However, despite the lack of clear legal regulations governing cryptocurrencies in Vietnam, experts warn that money laundering through transactions using this currency cannot be ruled out.
“Money laundering prevention has been a priority for all countries in the world, including Vietnam from a very early date,” said Mr. Nguyen Doan Hung, Vice President of the Vietnam Blockchain Association.
The conference on preventing and combating money laundering in cryptocurrency transactions highlighted the risks posed by the use of blockchain technology, which has enabled sophisticated and fast-paced financial crimes.
“Most countries do not have a legal corridor to keep up with this change,” warned Mr. Hung.
The Current Legal Framework
Vietnam’s Law on Prevention and Combat of Money Laundering is already in place, but experts argue that the legal framework for digital currency and virtual currency transactions is incomplete. The conference recommended that agencies take steps to improve legal regulations and prepare high-quality human resources to effectively prevent and combat money laundering.
Recommendations for Improvement
To enhance the effectiveness of anti-money laundering activities through cryptocurrencies and digital assets, experts recommend:
- Identifying digital assets as a type of property recognized by the Vietnam Civil Code
- Developing compliance procedures for financial institutions
- Preparing high-quality human resources with expertise in economics, technology, and law
The Risks Ahead
Centralized exchanges are the largest recipients of dirty money, accounting for about 50% of total illegal transaction volume in the last five years, experts noted.
“The risk of cryptocurrency laundering activities in Vietnam will increase in the near future,” warned Mr. Phan Duc Trung, Permanent Vice Chairman of the Vietnam Blockchain Association.
By addressing these concerns and implementing effective anti-money laundering measures, Vietnam can mitigate the risks posed by its rapidly growing cryptocurrency market.