Vietnam’s Deputy PM and Binance CEO discuss blockchain growth, legal frameworks, and Da Nang’s development as a leading digital asset financial hub.
Vietnam is moving closer to establishing itself as a regional leader in blockchain and digital assets. This week Deputy Prime Minister Nguyen Hoa Binh met with Binance CEO Richard Teng and Bybit CEO Ben Zhou during an official trip to the United Arab Emirates. The discussions focused on the development of a pilot legal framework for the digital assets, the development of foreign investment, and the development of Da Nang as a new financial hub.
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According to the reports of Vietnamnet, the Deputy Prime Minister applauded the growth of Bybit in Vietnam, where it already serves over 2.5 million users. He emphasized the need for a suitable legal framework for digital assets to provide stability and promote innovation. Bybit promised to support Vietnam through providing international experience, training for talent and contributing to new regulation.
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The talks with Binance had even more weight. Nguyen Hoa Binh suggested Binance open a headquarters in Da Nang and collaborate with the International Financial Center to launch a regulated digital asset exchange. Richard Teng welcomed the proposal and signed a memorandum of understanding with the Da Nang People’s Committee centered on the development of blockchain. The government also invited him to serve as a senior advisor based on his regulatory experience at Abu Dhabi Global Market.
This collaboration is considered a strategic move in Vietnam’s strategy to enhance its global financial status. In line with its ambitions, the country is partnering with leading international exchanges with the hopes that it will attract more institutional investment and lend credibility to its planned International Financial Center.
Vietnam Aims to Regulate Digital Assets, Boost Investor Protection
Industry observers say there are still challenges. Binance has come under regulatory scrutiny in several countries and Vietnam will need robust oversight to prevent risks associated with compliance and governance. In addition, strict financial requirements may create barriers to participation.
While the government has decided on a minimum charter capital of about 10 trillion Vietnamese dong, or 409 million US dollars, for players in the center. While this rule may ensure stability, it may also slow the initial growth of the market by restricting smaller firms from entering the market.
Despite these concerns, Vietnam’s move towards a licensed digital asset framework is an important step. For years, the majority of crypto trading in the country has been done in informal over-the-counter markets, which exposes investors to risks and has no transparency. The new approach is to create a regulated environment that can attract global players, but can provide protection for domestic investors.
If successful, Da Nang may become a hub for digital assets in Asia. The partnership with Binance and Bybit shows Vietnam’s desire to connect finance, technology, and real estate together as an entire ecosystem. With clear rules and credible partners, the country has a chance at becoming a leader in blockchain innovation and international digital finance.
