ESTABLISHING A LEGAL FRAMEWORK FOR THE REGULATION OF VIRTUAL CURRENCY TRANSACTIONS – A STUDY OF SINGAPOREAN LAW AND RECOMMENDATIONS FOR VIETNAM

Abstract

Singapore, with its open and transparent approach, has developed a clear legal framework to regulate the trading and use of virtual currencies, while ensuring consumer protection and the prevention of financial crimes. In Singapore, virtual currencies are not recognized as legal tender but are permitted for use in transactions and investments under strict supervision by financial regulatory bodies such as the Monetary Authority of Singapore (MAS). This paper analyzes the advantages of Singapore's legal system and regulatory models for virtual currencies, and based on that, proposes several recommendations for Vietnam. These include building a flexible legal framework, protecting citizens’ rights, preventing financial crimes, and promoting the development of digital technologies. The paper concludes that Vietnam should adopt key lessons from Singapore in order to improve its legal framework for managing virtual currencies in the context of international integration.