Decision No. 1255/QD-TTg dated August 21, 2017, on approving the scheme of completion of the legal framework on management of virtual assets, digital currencies and virtual currencies

DECISION

ON APPROVING THE SCHEME OF COMPLETION OF THE LEGAL FRAMEWORK ON MANAGEMENT OF VIRTUAL ASSETS, DIGITAL CURRENCIES AND VIRTUAL CURRENCIES

PRIME MINISTER

Pursuant to the Law on Government Organization dated June 19, 2015;

Pursuant to the Government’s Decree No. 22/2013/ND-CP of March 13, 2013, defining the functions, tasks, powers and organizational structure of the Ministry of Justice;

Considering the proposal of the Minister of Justice specified in document No. 24/TTr-BTP dated June 05, 2017,

DECIDES:

Article 1. Approval of the scheme of completion of the legal framework on management of virtual assets, digital currencies and virtual currencies (hereinafter referred to as “the Scheme”) with the main contents as follows:

I. VIEWPOINTS AND OBJECTIVES OF FORMULATION OF THE SCHEME

1. Viewpoints

The formulation of the scheme shall be based on following viewpoints:

a) Institutionalize the guidance and policies of the Communist Party and the State on the protection of property rights in order to resolve existing and future issues;

b) Contribute to the protection of lawful rights and interests of domestic and foreign investors in Vietnam; effectively restrict, prevent and control related risks and abuses; elaborate regulations on property rights specified in the Civil Code 2015 on virtual assets, digital currencies and virtual currencies;

c) Selectively study international experiences on virtual assets, digital currencies and virtual currencies in order to identify, formulate and improve the relevant legal framework on the principle of conformity, transparency, stability and predictability of the legal system, and in accordance with international practice.

2. Objectives

The formulation of the scheme shall aim at the following objectives:

a) Research and identify fully and accurately the nature of virtual assets, digital currencies and virtual currencies according to experiences of other countries and practical situations in Vietnam; the relationship with physical assets and currencies; the role of virtual assets, digital currencies and virtual currencies and the impact of virtual assets, digital currencies and virtual currencies on the law;

b) Review and evaluate the practical legal framework on virtual assets, digital currencies and virtual currencies of Vietnam; relevant law of other countries and the impact on relevant Vietnamese legal system to identify and determine the attitudes of state agencies towards related legal issues; propose specific tasks and orientations to develop and improve the legislation on virtual assets, digital currencies and virtual money to ensure equivalent to related risks to control and mitigate said risks without affecting creativity and start-ups, ensure adaptability to changes in the ongoing development of information technology and e-commerce;

c) Assign responsibilities and roadmaps to relevant ministries and sectors for handling related issues.

II. TASKS

1. Review and evaluate the current legal situation on virtual assets, digital currencies and virtual currencies in Vietnam and research, survey related international experiences

a) Tasks:

- Comprehensively review the legal system of Vietnam, including: (i) The 2015 Civil Code; (ii) The Law on investment 2014 (amended on 2016); (iii) The Law on information technology 2006, the Law on e-commerce 2005; (iv) the Law on the State bank of Vietnam 2010, the Law on credit institutions 2010, the Ordinance on foreign exchange control 2005 (amended on 2013); (v) the Law on value-added tax 2013 (amended on 2016); the Law on personal income tax 2007 (amended on 2012, 2014); the Law on corporate income tax 2008 (amended on 2013, 2014); the Law on tax administration 2006 (amended on 2012, 2014, 2016); (vi) the Law on prevention of money laundering 2012 and guiding documents on the implementation of these laws and ordinances on matters related to virtual assets and currencies.

- Study into unresolved issues related to virtual assets and currencies.

- Study legal regulations on and developments of virtual assets and virtual currencies of some countries (the USA, EU, Japan, etc.).

- Hold conferences, seminars with domestic and foreign professionals on virtual assets and currencies to identify, clarify the roles of virtual assets, currencies and suggest orientations to improve the laws of Vietnam in these areas.

b) Results: A comprehensive review and assessment of the current state of the laws and situation of virtual assets and currencies in Vietnam and in the world; identify and suggest orientations to the Prime Minister.

c) Due date: August 2018.

d) Presiding authority: Ministry of Justice

dd) Cooperating authorities: Ministry of Information and Communications, Ministry of Industry and Trade, Ministry of Finance, Ministry of Public Security, Ministry of Science and Technology, Ministry of Planning and Investment, the State bank of Vietnam, People’s Supreme Procuracy, Supreme People’s Court,  Vietnam Chamber of Commerce and Industry, Vietnam Association of Small and Medium Enterprises and other related ministries.

2. Review, research and propose amendments and new legislative documents on digital currencies

a) Tasks: review, research and suggest amendments and new legislative documents on digital currencies

b) Results: A review and suggestion on amendments and new legislative documents on digital currencies and submit it to the Prime Minister.

c) Due date: August 2018.

d) Presiding authority: the State bank of Vietnam

dd) Cooperating authorities: Ministry of Justice, Ministry of Planning and Investment, Ministry of Information and Communications, Ministry of Industry and Trade, Ministry of Public Security, Ministry of Science and Technology, People’s Supreme Procuracy.

Supreme People’s Court, Vietnam Chamber of Commerce and Industry, Vietnam Association of Small and Medium Enterprises and other related ministries.

3. Prepare a proposal to build legislative documents on virtual assets and currencies

a) Tasks: Research and prepare a proposal to build legislative documents on virtual assets and currencies.

b) Results: A proposal to build legislative documents on virtual assets and currencies in accordance with the law on promulgation of legislative documents 2015.

c) Due date: December 2018.

d) Presiding authority: Ministry of Justice

dd) Cooperating authorities: Ministry of Information and Communications, Ministry of Industry and Trade, Ministry of Finance, Ministry of Public Security, Ministry of Science and Technology, Ministry of Planning and Investment, the State bank of Vietnam, People’s Supreme Procuracy, Supreme People’s Court,  Vietnam Chamber of Commerce and Industry, Vietnam Association of Small and Medium Enterprises and other related ministries.

4. Consider proposing amendments to and promulgation of new legislative documents on taxes on virtual assets and currencies

a) Tasks: Consider proposing amendments to and promulgation of new legislative documents on taxes on virtual assets and currencies

b) Results: A proposal to build legislative documents on taxes related to virtual assets and currencies in accordance with the law on promulgation of legislative documents 2015.

c) Due date: June 2019.

d) Presiding authority: Ministry of Finance.

dd) Cooperating authorities: Ministry of Justice, Ministry of Information and Communications, Ministry of Industry and Trade, Ministry of Public Security, Ministry of Science and Technology, Ministry of Planning and Investment, the State bank of Vietnam, People’s Supreme Procuracy, Supreme People’s Court, Vietnam Chamber of Commerce and Industry, Vietnam Association of Small and Medium Enterprises and other related ministries.

5. Consider proposing measures for violations related to virtual assets and currencies

a) Consider proposing measures for criminal violations related to virtual assets and currencies

- Tasks: Consider proposing measures for criminal violations such as criminal fraud, money laundering, terrorism financing and other crimes related to virtual assets and currencies.

- Results: Submit to the Prime Minister proposed measures for criminal violations such as criminal fraud, money laundering, terrorism financing and other crimes related to virtual assets and currencies.

- Due date: September 2019.

- Presiding authority: Ministry of Public Security

- Cooperating authorities: Ministry of Justice, Ministry of Planning and Investment, Ministry of Finance, Ministry of Information and Communications, Ministry of Industry and Trade, Ministry of Science and Technology, the State bank of Vietnam, People’s Supreme Procuracy, Supreme People’s Court and other related ministries.

b) Consider proposing measures for administrative violations related to virtual assets and currencies

- Tasks: Consider proposing measures for administrative violations related to virtual assets and currencies

- Results: Submit to the Prime Minister proposed measures for administrative violations related to virtual assets and currencies.

- c) Due date: September 2019.

- Presiding authority: Ministry of Justice

- Cooperating authorities: Ministry of Public Security, Ministry of Planning and Investment, Ministry of Finance, Ministry of Information and Communications, Ministry of Industry and Trade, Ministry of Science and Technology, the State bank of Vietnam, People’s Supreme Procuracy, Supreme People’s Court and other related ministries.

6. Research and prepare proposal to amend laws and ordinances in order to complete the legal framework for management and handling of virtual assets and currencies

a) Tasks: Research and prepare a proposal to build amending law(s) related to virtual assets and currencies.

b) Results: A proposal to build amending law(s) on tax related to virtual assets and currencies in accordance with the law on promulgation of legislative documents 2015.

c) Due date: December 2020.

d) Presiding authority: Ministry of Justice

dd) Cooperating authorities: Ministry of Information and Communications, Ministry of Industry and Trade, Ministry of Finance, Ministry of Public Security, Ministry of Science and Technology, Ministry of Planning and Investment, the State bank of Vietnam, People’s Supreme Procuracy, Supreme People’s Court,  Vietnam Chamber of Commerce and Industry, Vietnam Association of Small and Medium Enterprises and other related ministries.

III. ORGANIZATION OF IMPLEMENTATION

1. The Ministry of Justice, the State bank of Vietnam, Ministry of Finance and Ministry of Public Security shall preside over and perform assigned tasks in this scheme in accordance with the time limit and quality requirements.

2. The Ministry of Justice shall monitor, urge and report to the Prime Minister the implementation of the scheme; suggest amendments to the scheme's contents (if necessary); organize the review of the scheme implementation.

3. Funds for implementation of the scheme shall be allocated from the state budget funds allocated annually to related ministries and agencies and from other sources of mobilization (if any).

a) Annually, related ministries and agencies shall prepare cost estimates for assigned tasks in accordance with laws on state budget.

b) The Ministry of Finance shall allocate funding for the implementation of the scheme in the budget expenditure estimates of the ministries and agencies in charge of the implementation.

Article 2. This Decision shall come into force as from the date on which it is signed.

Article 3. Implementation responsibility

Ministers, heads of ministerial-level agencies, heads of the Government’s affiliates, Chairpersons of People’s Committees of central-affiliated cities or provinces, and relevant organizations and individuals shall be responsible for implementing this Decision./.