However, there is currently lacking of a full legal framework to recognize the cryptocurrency whether as an asset or goods and thus can Vietnams Provincial Competitiveness Index 2022: Key Takeaways, Vietnam-Israel FTA Negotiations Complete, Trade Boost Expected, Vietnams Import-Export Turnover Tops US$58 Billion in March. Vietnam was in a bright spot in 2021, but this gap was widened after the fall of FTX. This makes them convenient for unbanked Vietnamese, especially those who wish to scale their crypto investments and earn passive income. Vietnam has been a world leader in crypto adoption and the industry has flourished in the socialist republic. In 2018 State Bank of Vietnam banned commercial banks and others from making transactions using cryptocurrencies, maintaining that using crypto puts users at risk of terrorism financing and all activities related to cryptocurrency became strictly illegal. Essentially, whether cryptocurrencies are taxed or not depends on their use, according to, In Malaysia, cryptocurrency transactions are currently, , because digital currencies are not considered, However, profits from active crypto trading, as a unit of account, medium of exchange, or a store of value.. According to an assessment carried out by the Vietnamese financial comparison platform TheBank, the most open available remittance policy shows that for many types of transfer in many Vietnamese banks the limits are USD 25,000 per person per year. We maintain offices in Hanoi and Ho Chi Minh City, as well asthroughout China, South-East Asia, India, and Russia. Vietnam & Cryptocurrency | Blockchain & Cryptocurrency [3], In February 2019, the Ministry of Justice file a report after a review of current legislation related to virtual currencies and offered various policy proposals to the government. Right now, the Vietnamese government does not even recognize cryptocurrencies as legal tender. On the other hand, the government prevents financial institutions from handling Crypto. Join STICPAY on LinkedIn! Crypto for Advisors What financial advisors need to know about crypto. Issuing, supplying and using virtual currency in general and Bitcoin, Litecoin in particular as currency or means of payment is prohibited, it said in an official dispatch in 2017. The General Statistics Office has released its report on labor and employment in Q1 2023. Vietnam Briefing has developed into a premium source for insight on doing business in Vietnam. The joke was that cryptocurrencies had devalued to the point that GPUs could be purchased as easily and as cheaply as fruit and vegetables on the side of the road. You might be using an unsupported or outdated browser. Follow us on Facebook | Twitter, Copyright 2020 Vietnam Insider. Please see www.pwc.com/structure for further details. LL17331) is registered with the Labuan Financial Services Authority as a Money Broking and Payment System operator (MB/21/0073).STIC LTD is authorised and regulated by the Financial Services Commission, Mauritius under code FS-2.9, Payment Intermediary Services Licence (License No. European Parliament has finally passed the long debated and much anticipated MiCA, the comprehensive crypto assets and markets legislation on 20.04.2023. In fact, the State Bank of Vietnam labeled bitcoin ( BTC) and other digital currencies as illegal, and people using them for trading purposes could face fines of up to $8,700 and jail time. If you transfer crypto to someone else outside For individuals the valid sources of income are: Salaries earned in Vietnam, held in a Vietnamese bank account with showing of paid taxes; Personal funds held in a Vietnamese bank account and originally transferred from other countries; Funds from other tax-paid sources in Vietnam held in a Vietnamese bank account. Vietnam Tasks Government Agencies to Prepare Legal Will Income From Cryptocurrency Be Taxed In Vietnam? Cryptocurrency trading is not new and attracts a lot of participants. According to World Bank statistics, remittance costs to Vietnam average about 7% as of 2020. If you have crypto transactions across several exchanges, crypto wallets or crypto credit cards, however, things may get more complicated. 5747/NHNN In the latter half of 2022, ED conducted criminal investigation against one of the largest cryptocurrency exchanges in India. These taxes apply even if you use crypto to make purchases, meaning you may be on the hook for sales tax plus taxes on any gains your crypto has made since you first bought or received it. Vietnam needs to take a cautious step toward cryptocurrency. We are launching a series of articles about international money transfer regulations in different countries. However, according to Dr. Koen Vincent, given the openness of the economy, Vietnam is susceptible to geopolitical uncertainty and supply chain disruption risks. But in 2021, a controversial new tax law came into force which effectively kills crypto derivatives trading in Germany, as losses can no longer be deducted. It has been suggested that amendments should be made to the law to cover virtual assets. As such, cryptocurrencies cannot be used legally in trade relationships. Fintech firms breakdown Vietnam 9M 2021, by category, Fintech funding breakdown Vietnam 9M 2022, by category, Funding value of Sky Mavis 2019-2022, by investment round, GameFi participation Vietnam 2022, by type, GameFi information sources among investors Vietnam 2022, Reasons for not participating in GameFi Vietnam 2022, Facebook: quarterly number of MAU (monthly active users) worldwide 2008-2022, Quarterly smartphone market share worldwide by vendor 2009-2022, Number of apps available in leading app stores Q3 2022. We'd love to hear from you, please enter your comments. In other words, the Vietnamese government is silent when it comes to taxing Crypto. (Source photos by Reuters) HO CHI MINH Performance information may have changed since the time of publication. Freeman Law can help with digital currencies, tax planning, and tax compliance. Belarus is taking an experimental approach to cryptocurrencies. However, for businesses its a different matter; a startup incorporated in Germany still needs to pay corporate income taxes on cryptocurrency gains, just as it would with any other asset. The Collapse of FTX and Vietnam's Crypto Market: What's If digital assets are bought for long-term investment purposes, any profits from disposal would not be chargeable to profits tax, he wrote in March when the directive was introduced. Here's what firms that wish to pursue this option should know. In the fast-paced world of Crypto, you can make or lose a vast amount of money within a blink of an eye. The Vietnamese central bank has been tasked with researching and developing a blockchain-based currency. By submitting your email address, you acknowledge that you have read the Privacy Statement and that you consent to our processing data in accordance with the Privacy Statement. The Cayman Islands Government has introduced a bespoke legislative regime to attract cryptoasset and other fintech businesses to its shores, writes Ian Mason. Brazil has said that existing AML laws extend to virtual currencies in a few contexts. Research by Triple A shows that over 5.9 million people, or 6.1% of the total population of Vietnam, currently own cryptocurrency. In sum, some have described it as nothing short of a nightmare. Janet Berry-Johnson is a CPA who writes about income taxes, small business accounting, and personal finance. While preliminary approaches have been taken to regulate crypto use, including issuing warnings, a comprehensive framework needs to be developed. Vietnam Use our crypto tax calculator below to determine how much tax you might pay on crypto you sold, spent or exchanged. The island nation of Bermuda is one such territory; it doesn't impose income, capital gains, withholding, or other taxes on digital assets, or on transactions involving digital assets. People who likely thought their assets were safely held got shocked to see their investments disappearing. 1437/2001/QD-NHNN of September 19, 2001, issuing the regulation on the purchase, transfer and bringing of foreign currencies overseas by Residents being Vietnamese Citizens, LinkedIn - Transferring Money from Vietnam to Abroad: Options for Foreign Individuals and Companies, Thuvienphpluat - Quyt nh 630/Q-NHNN nm 2017 v K hoch p dng gii php v an ton bo mt trong thanh ton trc tuyn v thanh ton th ngn hng do Ngn hng Nh nc Vit Nam ban hnh, Besticoforyou - Vietnam Still on the Fence Regarding Cryptocurrency Regulation, Bitcoin News - Vietnam at Crossroads on Cryptocurrency Regulations | Regulation Bitcoin News, Vn Express - Vietnamese prefer cash to credit cards when travelling abroad, Vietnam Plus - Cash withdrawal limit in foreign countries set at 30 million VND | Business | Vietnam+, The Bank Vietnam - Nn m th tn dng ngn hng no tt nht 2020, IATA - Viet Nam Customs, Currency & Airport Tax regulations details, Finder - Best way to send money to Vietnam, The Bank Vietnam - Cc cch chuyn tin ra nc ngoi thng dng nht hin nay. Most jurisdictions and authorities have yet to enact laws governing cryptocurrencies, meaning that, for most countries, the legality of crypto mining remains unclear. This is following a July 2021 directive issued by Prime Minister Phm Minh Chnh in which he asked the State Bank of Vietnam to explore the benefits and downsides of digital currencies with a view to draft regulations. Otherwise, the countrys future will not be reliable and secure for investors. Visit their website to see how their services can help your business succeed. Vietnam Vietnam is still a cash society, which prefers cash to credit cards and e-money, but is experiencing increasingly large interest in e-money, especially crypto. like Bitcoin, but crypto trades are considered similar to day trading in stocks or shares, and attract business income tax at the rate of 35%. According to Chainplays State of GameFi 2022 survey in August, 75% of GameFi crypto investors said that they started investing in digital currencies after joining GameFi platforms. Thuan is an experienced tax and accounting adviser with over 15 years of work experience. The Forbes Advisor editorial team is independent and objective. Axie Infinity, based in Ho Chi Minh City, a game that awarded players with crypto tokens, reached a valuation of US$3 billion. Nikkei Asian Review, now known as Nikkei Asia, will be the voice of the Asian Century. (You may owe taxes if you later sell the crypto you mined or received at a profit. Vietnam is still a cash society, which prefers cash to credit cards and e-money, but is experiencing increasingly large interest in e-money, especially crypto. Information provided on Forbes Advisor is for educational purposes only. In Malaysia, cryptocurrency transactions are currently tax-free, and cryptocurrencies dont qualify for capital gains tax, because digital currencies are not considered assets or legal tender by the authorities. Caicos Islands, Uganda, United Arab Emirates, United Kingdom, United States, Uzbekistan, Vanuatu, Vatican City State, Vietnam, Wallis and Futuna, Western Samoa, After youve collected all of your crypto transactions, you must report them on IRS Form 8949, Sales and Other Dispositions of Capital Assets. According to data derived from Statista, Bitcoin (BTC), which is widely used by investors as a hedge against inflation, is currently the most popular cryptocurrency in the country. Even in these countries, tax laws are subject to change and are often complex. I Email: editor@vietnaminsider.vn, Vietnams Crypto Market after the Fall of FTX, Tuyen Quang: Hot air balloon caught fire, 6, Vietnamese Teacher Sells Pigs to Provide Free Lunches, Heres why two new expressways worth nearly 25, Vietnam to have new Asia Link Cable submarine, Opening Paragliding Festival Flying over the water season, Mekong Tourism Forum 2023 highlights resilient and digitalized, April 30th Holiday: Some flights have sold out,. Please review our Vietnam Exorbitant fees made crypto transfers an ideal option for sending money. They also enable investors to safeguard their assets using DeFi insurance and dont require paperwork. Take your reading anywhere with offline reading functions, Never miss a story with breaking news alerts. Bond sales and initial share sales have been lackluster at best. WebA. It is no surprise that the game reached a $3 billion evaluation. The best of the best: the portal for top lists & rankings: Strategy and business building for the data-driven economy: Countries with the highest DeFi adoption in the world in 2021, Cryptocurrency ownership Vietnam 2022, by coin, Consumer searches for the term "Bitcoin" on Google in 55 countries worldwide in 2020, Cryptocurrency adoption Vietnam 2019-2022, Leading Vietnamese cryptocurrencies 2021, by market cap, Cryptocurrency ownership Vietnam 2022, by age group, Share of cryptocurrency adopters APAC 2022, by country, Share of cryptocurrency adopters in the Asia-Pacific region in 2022, by country, Share of Bitcoin adopters APAC 2022, by country, Share of Bitcoin adopters in the Asia-Pacific region in 2022, by country, Share of Ethereum adopters APAC 2022, by country, Share of Ethereum adopters in the Asia-Pacific region in 2022, by country, Cryptocurrency value expectations in 5 years' time SEA 2021, by country, Cryptocurrency value expectations in 5 years' time in Southeast Asia as of December 2021, by country, Crypto Adoption Index ranking Vietnam 2021, by metric, Crypto Adoption Index ranking of Vietnam in 2021, by metric, Cryptocurrency transaction value in Vietnam 2017-2027, Transaction value of the cryptocurrency sector in Vietnam from 2017 to 2027 (in million U.S. dollars), Transaction value change of the cryptocurrency sector in Vietnam 2018-2027, Transaction value change of the cryptocurrency sector in Vietnam from 2018 to 2027, Average transaction value per user of cryptocurrencies in Vietnam 2017-2027, Average transaction value per user of the cryptocurrency sector in Vietnam from 2017 to 2027 (in U.S. dollars), Penetration rate of cryptocurrencies in Vietnam 2017-2027, Penetration rate of cryptocurrencies in Vietnam from 2017 to 2027 (in millions), Number of users of cryptocurrencies in Vietnam 2017-2027, Number of users of the cryptocurrency sector in Vietnam from 2017 to 2027 (in millions), Most used stablecoins among cryptocurrency investors Vietnam H1 2022, Most used stablecoins among cryptocurrency investors in Vietnam in the first half of 2022, Weekly volume of P2P traded Bitcoin via LocalBitcoins Vietnam 2022-2023, Weekly volume of peer-to-peer traded Bitcoin via LocalBitcoins in Vietnam from December 2022 to February 2023, Weekly value of P2P traded Bitcoin via LocalBitcoins Vietnam 2022-2023, Weekly value of peer-to-peer traded Bitcoin via LocalBitcoins in Vietnam from December 2022 to February 2023 (in Vietnamese dong), Volume of P2P traded Bitcoin Vietnam 2016-2018, Volume of peer-to-peer traded Bitcoin in Vietnam from 2016 to 2018, Value of P2P traded Bitcoin Vietnam 2016-2018, Value of peer-to-peer traded Bitcoin in Vietnam from 2016 to 2018 (in million U.S. dollars), Number of Ethereum Mainnets Vietnam 2022, by location, Number of Ethereum Mainnets in Vietnam in 2022, by location, Leading cryptocurrencies developed in Vietnam as of August 2021, by market capitalization (in billion U.S. dollars), Daily sales and price development of gaming dapp Axie Infinity to November 29, 2022, Sales volume of NFT gaming collection Axie Infinity against the price of its token AXS up until November 29, 2022, Share of people who invested in NFTs among crypto investors Vietnam 2022, Share of people who participated in NFT investments among cryptocurrency investors in Vietnam in the first half of 2022, Most used ecosystems for NFT investments among investors Vietnam H1 2022, Most used ecosystems for NFT investments among cryptocurrency investors in Vietnam in the first half of 2022, Most popular NFT segments among investors Vietnam H1 2022, Most popular NFT segments among cryptocurrency investors in Vietnam in the first half of 2022, Reasons for investing in NFTs among investors Vietnam H1 2022, Reasons for investing in NFTs among cryptocurrency investors in Vietnam in the first half of 2022, Share of people who participated in GameFi Vietnam 2022, Share of people who participated in GameFi in Vietnam in the first half of 2022, Most popular methods of investing in GameFi coins Vietnam 2022, Most popular methods of investing in GameFi coins among investors in Vietnam in the first half of 2022, Favorite GameFi genres among investors Vietnam 2022, Most popular GameFi genres among cryptocurrency investors in Vietnam in the first half of 2022, Leading blockchain games among GameFi investors Vietnam 2022, Leading blockchain games among GameFi investors in Vietnam in the first half of 2022, Share of online population who indicated they either owned or used cryptocurrencies in Vietnam from 2019 to 2022, Ownership of cryptocurrencies among people in Vietnam as of November 2022, by age group, Ownership of cryptocurrencies among people in Vietnam as of November 2022, by coin, Share of cryptocurrency investment in total assets among Vietnamese investors 2022, Share of cryptocurrency investment within total assets among investors in Vietnam in the first half of 2022, Cryptocurrencies with the most interest among investors Vietnam 2022, Leading cryptocurrency categories based on investment interest among investors in Vietnam in the first half of 2022. [2] https://tuoitre.vn/ngan-hang-nha-nuoc-tuyen-bo-cam-su-dung-bitcoin-20171028102135916.htm. Cryptocurrency Taxes 2023 Forbes Advisor Cryptographic Hash Algorithms: An Introduction, Overview of the Most Common Cryptocurrencies, Double-Spending Problem and Byzantine Generals Problem in Relation to Cryptocurrency, Permission and Permissionless Blockchains, Cryptography: Public Key Infrastructure (PKI), The Freeman Law Project Cryptocurrency Regulation and Taxation: A Brief Primer, cryptocurrency, digital currencies, or blockchain technology. To get the best possible experience please use the latest version of Chrome, Firefox, Safari, or Microsoft Edge to view this website. Under the Income-tax Act, a VDA has been defined to mean any information, code, number or token generated through cryptographic means and which can be transferred, stored or traded electronically. Vietnam to pilot virtual currency as crypto thrives in gray zone, The Vietnamese central bank has been tasked with researching and developing a blockchain-based currency. This implementation can help foster crypto development in the country in the future. MiCA (Markets In Crypto Assets) Dissected - Part 1. Remember self-employment deductions. Vietnam Caicos Islands, Uganda, United Arab Emirates, United Kingdom, United States, Uzbekistan, Vanuatu, Vatican City State, Vietnam, Wallis and Futuna, Western Samoa, The latter are treated as income and taxed at the applicable rate. If an individual wants to transfer money via bank transfer they will have to show confirmation of tax payments and a legal source of income within Vietnam. Our free webinars are packed full of useful information for doing business in Vietnam. 1992-2023 Dezan Shira & Associates All Rights Reserved. Vietnams Provincial Competitiveness Index 2022 has been released.