Vietnam is currently accelerating its involvement in the crypto industry, ranking third in the world for the number of investors participating in crypto asset trading. As such, the country has reportedly chosen Bybit as an ally to further expand its presence in the digital asset sector.
The proliferation of underground and unofficial transactions is posing substantial risks to investors, prompting the government to prioritize the establishment of a robust legal framework for effective regulation.
Vietnam’s Finance Minister Proposes Legal Framework For Crypto
Minister of Finance Thang recently announced that the Ministry of Finance (MoF) has been tasked with leading efforts to create a comprehensive legal framework governing crypto asset transactions.
In early May, the MoF plans to submit a resolution to the government proposing a pilot program for a regulated cryptoasset trading platform. This aims to control risks associated with crypto trading while providing a transparent and secure environment for businesses and investors.
“This mechanism also helps to utilize resources from cryptoassets to develop the digital economy in Vietnam,” Minister Thang emphasized, highlighting the potential benefits of a well-regulated crypto market.
Cryptocurrency exchange Bybit, founded in 2018 in Dubai, is playing a crucial role in the country’s regulatory moves. As the second-largest cryptocurrency exchange globally, trailing only Binance, Bybit has expressed strong interest in supporting Vietnam’s regulatory efforts.
Co-founder Zhou stated, “Vietnam has great potential to develop a cryptoasset market. Once a legal framework is established, a well-regulated exchange can bring many positives.”
Zhou has proposed a sandbox model—a controlled environment that allows for the safe testing of trading features—to assist the MoF in drafting the legal framework. This aims to ensure that new regulations can be effectively trialed before full implementation.
Zhou also noted that the exchange has established tools and collaborations with major global organizations, enabling comprehensive transaction tracking to prevent illicit money flows.
One Of The Largest Hacks In Crypto History
This regulatory push comes on the heels of a significant security breach that Bybit experienced in March, which involved its Ethereum cold wallet. This incident marked one of the largest hacks in cryptocurrency history, with estimated losses exceeding $1.5 billion.
During the breach, approximately 401,347 ETH, valued at around $1.12 billion, were withdrawn. Additional losses included 90,376 stETH worth $253.16 million, 15,000 cmETH valued at $44.13 million, and 8,000 mETH totaling $23 million. The total estimated loss from this incident stands at approximately $1.44 billion.
As reported by NewsBTC, the Bybit hack was executed through a sophisticated manipulation of the transaction process, allowing the attacker to mask the signing interface while altering the underlying smart contract logic.
On-chain market intelligence firm Arkham Intelligence reported that evidence provided by crypto sleuth ZachXBT linked the Bybit hack to the notorious Lazarus Group, a North Korea-backed hacker organization.
Featured image from DALL-E, chart from TradingView.com
