Vietnam is preparing to legalize bitcoin and other cryptocurrencies under a new plan approved by the prime minister.
As reported by VNA, Vietnamese Prime Minister Nguyen Xuan Phuc has asked the Minister of Justice to coordinate with other top advisors, including the State Bank of Vietnam and the Ministry of Finance, to draft a framework for cryptocurrency legalization by August 2018 so that the legal documents could be finalized by the end of the year.
The prime minister also instructed his advisors to assess the best way to tax cryptocurrencies and penalize violations of the regulations. These tasks are to be completed by June and September of 2019, respectively.
The plan is a fulfillment of a 2016 report that the nation was considering taking a more open stance to cryptocurrency and other disruptive financial technologies.
The move toward legalizing bitcoin represents a change of heart from the Vietnamese government. As early as 2014, the State Bank of Vietnam had stated the cryptocurrency was not a valid form of payment or settlement within the nation. The government issued repeated warnings about bitcoin in the years that followed, although it did not prohibit its citizens from using cryptocurrency. Earlier this year, however, the State Bank created a FinTech steering committee to promote the development of Vietnamese financial technology startups.
Many people anticipate bitcoin will flourish in Vietnam. As one of the world’s fastest-growing economies, many of its citizens now have access to smartphones but have never utilized traditional banks.
Vietnam joins several other nations in the Eastern Hemisphere who have recently begun considering bitcoin legalization. Earlier this month, the National Bank of Ukraine announced it would develop a legal framework for bitcoin regulation, while the Philippines just approved the registration of two bitcoin exchanges. India, however, continues to dissuade its citizens from using cryptocurrency, even as local exchanges have seen demand surge in 2017.
Bitcoin to surge nearly 80% to $5,000, Ethereum to double
After testing out digital currencies earlier this month, independent stock research analyst Ronnie Moas on Sunday published the first two parts of his 122-page report on bitcoin and other digital currencies.
“In my view, the genie is out of the bottle, and cryptocurrencies will continue to rise and take market share away from stocks, other precious metals, bonds and currencies,” Moas, founder of Standpoint Research, said in the report.
“I think investors should take a shot on this and hold for a few years. If you lose a few bucks, at least you took a shot,” he said. “In life, you miss every shot that you do not take. It will probably be more upsetting to watch it (from the sidelines) go up another 1,000%.”
Moas gave bitcoin a $5,000 price target for 2018, reflecting nearly 80 percent upside from Monday’s price of about $2,800. He also expects rival digital currency ethereum to more than double in value from just under $200 to reach $400 in the next year, and another digital currency, litecoin, to double from about $40 to $80.
In the next week or two, Moas said he plans to issue the third part of the 122-page report about how a fourth and much smaller digital currency could rise a few hundred percent in the near future.
The Crypto Gambling stock analyst said he’s bought 10 of the top 20 digital currencies by market capitalization in order to be diversified, marking the first time in 20 years he’s put money into his own recommendations.
“In my view, 10-15 years from now, the charts on a few of the top 20 names will look like the Amazon, Apple, Tesla, Facebook, Netflix and Google charts look today,” Moas said in the report.