Vietnam is taking steps to regulate digital assets as the country faces rising crypto-related fraud. The proposed framework aims to reduce scams and provide legal clarity, addressing concerns about Vietnam's "policy grey zones" that allow criminals to operate unchecked. According to Phan ??c Trung, the Vietnam Blockchain Association chairman, recent reports revealed a$100 million crypto fraud targeting local investors.

Despite Vietnam's ambition to become a blockchain leader by 2030, the lack of regulation has created risks for investors. With 17 million Vietnamese citizens actively using crypto and capital inflows reaching$105 billion for 2023-2024, the country ranks among the world's top crypto adopters. However, Trung warns that bad actors exploit loopholes by registering offshore without clear laws, making enforcement difficult.

Authorities have already cracked down on crypto scams, arresting multiple suspects in Hanoi and Dong Nai Province for defrauding victims through fake tokens and mining schemes. The new draft law, expected to pass in Q2 2025, aims to establish a legal framework for consumer protection, dispute resolution, and tackling illicit financial activities linked to crypto.