Vietnamese authorities are still considering their approach to regulating the cryptocurrency. Blockchain games with financial incentives, often referred to as GameFi, use innovative economic models that allow users to earn rewards while playing. By continuing to browse this website, you accept cookies which are used for several reasons such as personalizing content/ads and analyzing how this website is used. 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World Bank estimates indicate that just over 61% of the countrys population resides in rural areas, where access to modern banking services is limited. 12255239) is registered with the Financial Conduct Authority as an EMD Agent (FRN: 902825) of CFS-Zipp Ltd an Electronic Money Institution authorised by the Financial Conduct Authority (FRN: 900027)The licence only covers the funds and activities of EEA registered clients and merchants. The meltdown was too sudden and could never be controlled, resulting in billions of losses for even seasoned crypto traders. This, coupled with relatively low financial literacy, may have attracted many Vietnamese to the high-risk, high-reward cryptocurrency sector, according to Binh Nguyen, the Fintech-crypto Hub Coordinator at RMIT Vietnam. In November 2022, the worlds second-largest Crypto, FTX, was valued at more than $30 billion. Bitcoin Vietnam is located in Ho Chi Minh City. The developers include Ancient8, Sipher and Summoners Arena. Your financial situation is unique and the products and services we review may not be right for your circumstances. There currently is a buzz that Vietnam gets its first cryptocurrency exchange and there are many Vietnamese closed communities involved in crypto. The Forbes Advisor editorial team is independent and objective. Unlike most other states, Europes biggest economy regards Bitcoin as private money, as opposed to a currency, commodity, or stock. Please try again. Overview and forecasts on trending topics, Industry and market insights and forecasts, Key figures and rankings about companies and products, Consumer and brand insights and preferences in various industries, Detailed information about political and social topics, All key figures about countries and regions, Market forecast and expert KPIs for 600+ segments in 150+ countries, Insights on consumer attitudes and behavior worldwide, Business information on 70m+ public and private companies, Detailed information for 35,000+ online stores and marketplaces. Editorial Note: We earn a commission from partner links on Forbes Advisor. However, companies that receive payment in cryptocurrencies, or through mining, are required to pay tax at the corporate rate. Vietnam is one of the developing countries where cryptocurrency has played a significant role. Janet Berry-Johnson is a CPA who writes about income taxes, small business accounting, and personal finance. Over the past couple of years, Vietnamese have accumulated assets to hedge against inflation. This means you may owe taxes if your coins have increased in value, whether youre using them as an investment or like you would cash. Los Angeles Lakers Pau Gasol Jersey Retirement 3/7/23 XL Crypto is a risky investment, Huan Huu Nguyen, a professor at the University of Economics HCMC told local press. Short-term crypto gains on purchases held for less than a year are subject to the same tax rates you pay on all other income: 10% to 37% for the 2022-2023 tax filing Based on legal documents dated to 2017, the government has set limits for transferring money abroad for different types of online payment transactions: for some type of transactions for individuals the limits are, Thuvienphpluat - Decision No. The Southeast Asian nation of Vietnam now ranks among the top nations adopting cryptocurrencies. The most important key figures provide you with a compact summary of the topic of "Cryptocurrency in Vietnam" and take you straight to the corresponding statistics. Vietnam has been a world leader in crypto adoption and the industry has flourished in the socialist republic. How To Find The Cheapest Travel Insurance, Form 8949, Sales and Other Dispositions of Capital Assets. Unfortunately, members reported losing millions of dollars because they could not make timely withdrawals. Vietnam & Cryptocurrency | Blockchain & Cryptocurrency It was enough that on 30 October 2017 the State Bank of Vietnam, or SBV, announced that the use of cryptocurrency in Vietnam as a form of payment would not be Heres a look at what that could mean, the The trade-off is that Vietnamese law doesnt protect crypto users in the event of scams or losses. Vietnam - Individual - Taxes on personal income - PwC The country was recently ranked third in Eastern Europe and 19th globally in levels of P2P crypto trading. Please see www.pwc.com/structure for further details. Vietnam GameFi, especially play-to-earn (P2E) games, are immensely popular in Vietnam and have contributed greatly to cryptocurrency adoption in the country. In the heady days of the pandemic in 2021, Vietnamese digital media was filled with crypto currency success stories, with one tale in particular sparking vast volumes of coverage from all around the world. (See also: Vietnam Tasks Government Agencies to Prepare Legal Framework for Cryptocurrencies, Virtual Assets). Cryptocurrencies are not recognized as a legitimate means of payment in Vietnam. [1] https://english.luatvietnam.vn/decision-no-1255-qd-ttg-dated-august-21-2017-of-the-prime-minister-on-approving-the-scheme-of-completion-of-the-legal-framework-on-management-of-vir-116516-Doc1.html. Crypto Chainalysis research methodology took into account population-adjusted adoption in crypto platforms ranging from centralized exchanges to peer-to-peer (P2P) payment networks. Vietnam to pilot virtual currency as crypto thrives in gray But interest was already subsiding when, two weeks ago, major crypto exchange FTX collapsed. The Vietnam Briefing Magazine was first published in 2009, and is contributed to by investment professionals based in Vietnam. Crypto (These programs may charge a fee for their services.). The Organization for Economic Cooperation and Development (OECD) predicts that Vietnam's economy will steadily grow, with a gross domestic product (GDP) of 6.5% in 2023 and 6.6% in 2024. This means all transactions, from selling coins to using cryptos for purchases, are subject to the same tax treatment as other capital gains and losses. This was a 3% increase from the $17.2 billion recorded in 2020. If the assets are held for less than a year, capital gains tax doesnt accrue on a sale, as long as the amount does not exceed 600 euros ($692). Not only did the FTX collapse made millions of Vietnamese lose their money, but the event also pushed digital currencies down. data than referenced in the text. 2. Coopertoby Ltd (Companies House No. Germany offers a unique take on taxing digital currencies such as Bitcoin. Here's what it says about how Vietnam's provinces are developing. Error! Will-Income-From-Cryptocurrency-Be-Taxed-In-Vietnam.pdf, Foreign loans for Vietnamese borrowers Q&A, Online Tax Portal for Non-residents Conducting Cross-border E-commerce and Digital-based Business Activities in Vietnam Is Now Open. On your tax return for that year, you should report $200 of ordinary income (either as wages if reported on a W-2 or as self-employment income if you are not an employee getting paid in crypto) for receiving the Litecoin in January and a short-term capital gain of $300. Includes all forms + live chat support, Ask a Tax Pro, front-of-the-line assistance. Tax liability is a major source of concern for anyone invested in Bitcoin and other digital assets. Tags in this story All rights reserved. Otherwise, the countrys future will not be reliable and secure for investors. Bitcoin is the most used cryptocurrency in Vietnam. Im a little worried about virtual currencies because though they havent been recognized, people are still trading in them, he said. Feb 15, 2022. That said, Vietnams high adoption rate is a puzzling phenomenon, begging the question: Why is crypto adoption so high in the country? Crypto Tax That being said, the fall of FTX made a lot of Vietnamese unhappy. Crypto On April 11, 2018, the prime minister issued a directive in an effort to manage virtual assets/currencies and study their impact on the Vietnamese economy. Luckily, many cryptocurrency exchanges provide transaction reports that include all buy, sell and exchange transactions that occur in your account. Other factors that led to the crypto boom in Vietnam include; An expansive segment of the Vietnamese population has limited access to financial institutions. However, this will need to be considered in light of the provisions of any double taxation agreement (DTA) that might apply. Between them, they remit an estimated US$3-3.5 billion every year, according to the Ministry of Labor, Invalids, and Social Welfare. The OECD predicts that Vietnam's economy will steadily grow, with a gross domestic product (GDP) of 6.5% in 2023 and 6.6% in 2024. The amount of tax you'll pay on crypto in the USA depends on how much you earn, the specific transaction, and how long you've held the asset. Nikkei Inc. No reproduction without permission. And the crash of the FTX exchange shattered investors trust and confidence in the crypto market.. Short-term crypto gains on purchases held for less than a year are subject to the same tax rates you pay on all other income: 10% to 37% for the 2022-2023 tax filing season, depending on your federal income tax bracket. In May 2020, the Ministry of Finance established a research group to review and analyze the regulations and policies related to virtual assets. Its no surprise that Switzerland, home to the innovation hub known as Crypto Valley, has one of the most forward-thinking tax policies too.