Setting up a business in Vietnam comes with many advantages for foreign investors who want to explore emerging industries like cryptocurrency. Among these advantages are the same regulations and the same taxation system. Moreover, Vietnam is one of the first Asian countries to create regulations for cryptocurrency transactions.
Our company formation agents explain how foreign enterprisers can open a cryptocurrency company in Vietnam. They can also assist you throughout the procedure of company formation. So, if you are planning to open a company in this country, you can interact with our experts.
Steps to register a cryptocurrency company in Vietnam
Foreign entrepreneurs who want to register cryptocurrency businesses in Vietnam must follow the same procedure and steps as for any type of fintech company. These steps are:
- choose the right business form for the activities to be undertaken;
- prepare the documents related to the company incorporation and file them with the Business Registration Office;
- prepare an investment plan and a feasibility study to show how the company will impact the economy and file it with the same office;
- open a corporate bank account, deposit the share capital and register for taxation purposes.
At the moment, there are no special licensing requirements for registering cryptocurrency companies in Vietnam.
Our Vietnam company formation consultants can guide investors through the incorporation of the cryptocurrency business.
New legislation on cryptocurrencies in Vietnam
At the beginning of 2018, the government together with the Vietnam National Bank decided to work on new regulations for the cryptocurrency sector which target the taxation of companies involved in such activities. The law is expected to be finished by the middle of 2019.
Until then, the Vietnamese authorities allow for the following activities to be carried out:
- cryptocurrency mining activities imply the use of computers to generate new digital money;
- the use of blockchain technology to complete various actions, such as smart contract signing;
- initial coin offering (ICOs) which imply the launch of new cryptocurrencies in order to raise funds for startups;
- the creation of IT companies that can create new virtual money.
It should be noted that at the moment the authorities do not allow cryptocurrency exchanges in Vietnam. Besides this, if you want online incorporation of any other business kind, you are welcome to get in touch with our company formation experts. They will not only guide you but also incorporate an online company for you.
Cryptocurrency licenses in Vietnam
No organization intending to conduct cryptocurrency trade in Vietnam has yet received a license from the Vietnamese government. Any investor wishing to conduct a cryptocurrency business in Vietnam is urged to consult with and obtain approval from numerous competent authorities in Vietnam, including the Ministry of Planning and Investment, the Ministry of Finance, the State Bank of Vietnam, and other relevant Ministries (if any), as running cryptocurrencies is not permitted under Vietnam’s Schedule of WTO Commitments. You can get further details regarding crypto licenses in Vietnam from company formation experts.
Furthermore, if you want to open a branch office in Vietnam, our experts can also assist you in this matter. They will further explain the duties and obligations of a branch office in Vietnam to you.
Cryptocurrency taxation in Vietnam
If you are planning to open a cryptocurrency company in Vietnam, you must know that trading in cryptocurrencies is not new and has a large following. However, there is still a lack of a comprehensive legal framework that would recognize cryptocurrencies as either products or assets and allow for trading under Vietnam legislation. The Investment Law 2020 does not include virtual currency investment in the list of industries where business investment is prohibited, and there is no specific directive that forbids individuals from investing in virtual currency, so the current regulations are not entirely clear from an investment or business perspective. Furthermore, the law also does not provide any directives for acquiring a crypto license in Vietnam.
According to Article 1 of Decree 80/2016/ND-CP on non-cash payment and instructions, the State Bank of Vietnam still does not recognize cryptocurrencies as a legitimate form of payment. The Prime Minister recently approved the e-Government development strategy for the period of 2021-2025, with a vision for 2030. The State Bank has been given primary responsibility by the Prime Minister to conduct research, develop, and pilot the use of virtual currency based on blockchain technology. The State Bank must implement these regulations between 2021 and 2023.
So, it could be the right time for you to open a cryptocurrency company in Vietnam. Our company formation agents can provide you with comprehensive assistance in this regard. In addition to company formation, if you want to protect your company’s trademark, you can also get assistance from our experts in this regard. They can help you register your trademark to protect your business from any infringements.
Future of cryptocurrency in Vietnam
By enabling online payments to be transmitted directly from one party to another without going via a financial institution acting as a trusted third party to handle electronic payments, cryptocurrency is transforming the worldwide payment sector. It avoids the fundamental flaws of the trust-based paradigm since it is supported by an electronic payment system based on cryptographic verification rather than on trust.
However, Vietnam appears to be moving very cautiously in the direction of cryptocurrencies due to claims that they are unregulated and therefore open to illegal activities like tax evasion, money laundering, funding for terrorism, and hacking. It is also possible that cryptocurrencies have the potential to upset established financial systems, which could have an impact on the economy of the country.
A research group led by the Vice-Chairman of the State Securities Commission was established by the Ministry of Finance on March 30, 2021, to conduct an in-depth study of cryptocurrencies to achieve legislative reform for the industry in Vietnam. While cryptocurrency trading and use are booming globally in terms of popularity, Vietnam cannot stand outside the game. Since non-cash payments have become more prevalent with several apps, QR codes, and e-wallets, the current economic change in Vietnam provides a particularly ideal setting for cryptocurrencies. Keeping in view all these factors, you can rely on our incorporation agents for forming a cryptocurrency company. They can also help you in acquiring a crypto license in Vietnam to regulate your business legally. Besides helping you to acquire a crypto license, if you are looking for other assistance, get in touch with our agents. For instance; if you want the help of a local Vietnamese accountant, our agents can assist you. For newly established businesses, our accountants can provide guidance and prepare tax declaration case files that include submitting license fee declarations, paying the license fee, registering to communicate with the tax authorities, registering for electronic tax payment, giving the notice to issue an electronic invoice, and other tax declaration processes.
Penalty for unlicensed regulations in Vietnam
The government may be prompted in its prohibition of the technology by early fraudulent firms that violated the trust of the Vietnamese people, in addition to the potential administrative and criminal consequences for the issuance, provision, or use of cryptocurrencies. Vietnam was one of the first countries to use the technology, and many cryptocurrencies turned out to be frauds. This led to the technology’s initial prohibition, and the government has not found a good reason to change its mind.
- The new 5-year plan might be a hint that the Prime Minister is finally prepared to take cryptocurrency seriously as a potential future technology;
- Without a crypto license in Vietnam, it is illegal to conduct cryptocurrency business in this country, and violators will face administrative penalties;
- For instance, a specific administrative fine of VND50,000,000 to VND100,000,000 and a 3-6-month suspension of the credit institution’s foreign exchange activities would be imposed on any investor operating a cryptocurrency business without acquiring a crypto license in Vietnam.
Please contact our company formation agents if you have any questions regarding opening a cryptocurrency company in Vietnam. Furthermore, if you cannot afford a commercial place, you can get a virtual office. Our company formation agents can help you get a virtual office that meets your business needs effectively.