Vietnam Ranks 2nd in the World for Cryptocurrency Ownership: Opportunities and Challenges

Vietnam ranks second in the World Cryptocurrency Ownership Rankings.

According to statistics from Triple-A e-payment gateway, on May 13, 2024, the UAE ranks first with 30.4% of the population, while Vietnam has a rate of 21.2%, equivalent to about 20 million owners. Vietnam has surpassed the United States, which ranks third with 15.6% of the population.

The fact that Vietnam has a high percentage of cryptocurrency ownership is not too surprising because in recent years Vietnam has always ranked first in many statistics related to cryptocurrencies. For 2 consecutive years 2021 and 2022, Vietnam has been the world's leading country in cryptocurrency adoption. 2023 ranks 3rd behind the US and UK.

Top 10 countries with the largest percentage of people owning cryptocurrency in the world. Source: Triple-A

Why is the rate of cryptocurrency ownership in Vietnam higher than in many other countries?

In March 2024, data from U.S. blockchain research firm Chainalysis also showed that players in Vietnam profited from the world's third-largest cryptocurrency, reaching $1.18 billion in profit in 2023. Vietnam is also one of 8 countries with cryptocurrency profits reaching over one billion USD. This partly explains why the percentage of cryptocurrency ownership increases gradually over time due to the attractive profitability of this currency.

In addition to the attractive benefits, Vietnamese interest in cryptocurrencies was further reinforced by a 2020 survey from Statista, which showed that 21% of surveyed Vietnamese people said they knew about or used cryptocurrencies. The high level of cryptocurrency acceptance in Vietnam also explains why Vietnamese people quickly grasp new global trends. Notable examples include the highest-grossing P2E (play-to-earn) game in the world, Axie Infinity, developed by Vietnamese creators. New trends such as M2E (move-to-earn) quickly flourished and were embraced by many Vietnamese people. Vietnam is also one of the first countries in the world to have an officially recognized Blockchain Association.

In addition, there are no legal regulations related to the issuance, purchase, sale, and exchange of virtual currencies, cryptocurrencies, and virtual assets in Vietnam. This is an opportunity for investment groups and cryptocurrency exchanges to remain bustling and easy for many people to join. According to the Crypto Council for Innovation, holding cryptocurrencies in Vietnam is attractive because of its ability to invest actively, and easily, high levels of return, and most importantly, not being taxed.

Opportunities to promote the digital transformation of the economy

The popularity of cryptocurrencies can boost the development of Blockchain and Fintech technology industries, creating many new jobs and GDP growth. This popularity has also attracted foreign investors and technology companies, improving the business environment and technology infrastructure. The development potential of the cryptocurrency market in Vietnam is huge, with Blockchain technology and the emergence of many new cryptocurrency projects and products in Vietnam all playing an important role in predicting the growth of this market in the future. Therefore, accelerating the progress of the digital market can play an undeniable role in promoting economic growth and improving people's quality of life. Sustainable and responsible development is an important factor in ensuring long-term benefits for the community. Shortly, the Government will also support this market by issuing policies to manage and ensure the interests of participants.

Unpredictable potential risks

In Vietnam, the legal system has not put cryptocurrencies into legal policies to manage and supervise, so the risks of cyber attacks and fraud have also increased, requiring strict sanctions and cybersecurity policies. The fact that individual investors are not fully equipped with knowledge before "putting money" into a highly volatile market, a high risk of losing assets for individual investors.

Most recently, the Mesea project scammed many people by soliciting investments in Premes and USDM virtual currencies. The project is advertised by P.Q.Hoi - Director of Vonic Software Co., Ltd. with many high-tech features and attractive profits, but issues virtual currency against the law. Initially, Mesea paid interest on time to build trust and entice victims to invest more. When enough money was large, the project suddenly stopped operating and hugged the multi-billion VND of investors.

Be a wise investor!

Before any investment decision, it is extremely important to do thorough research on the project and validate its reliability and profitability potential. The virtual currency market is always highly volatile and not bound by the law, so although it can bring great profit opportunities, it also has a great risk, reluctantly turning us into "venture capitalists".

To minimize risk, allocating investments to various cryptocurrencies, and trading only on reputable exchanges is a smart strategy. Always be wary of "enticements" from others with attractive profits. Remember, investing in cryptocurrencies does not guarantee profits, so only invest money that you can afford to lose without affecting your financial situation. If you feel unsure, seek advice from an experienced professional. It is important to understand and accept risks before deciding to invest.