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Fintech Regulations in Vietnam - Authority Regulated and Forms of Payment

posted 1 month ago

Welcome to the world of fintech regulation in Vietnam, where innovation meets compliance! As the fintech industry continues to flourish in the country, it is essential to examine the regulatory landscape shaping this dynamic sector. Fintech, a fusion of finance and technology, has the potential to revolutionize traditional financial services by offering innovative solutions to consumers and businesses alike. In Vietnam, where digital transformation is on the rise, policymakers and regulators are striving to strike a balance between fostering fintech innovation and ensuring consumer protection, financial stability, and fair competition. This first-step analysis will delve into the key regulatory frameworks and initiatives that govern fintech activities in Vietnam, shedding light on the opportunities and challenges that lay ahead for both fintech startups and established financial institutions.

Authority responsible with the Fintech regulation

In Vietnam, the regulatory landscape for fintech products and services is currently decentralized, with no single governing body in charge. However, the State Bank of Vietnam (SBV) holds the primary responsibility as the regulator under the Fintech Draft Decree. The SBV possesses the authority to grant special pilot approvals, also known as Trial Approvals, for fintech products and services. While considering the sandbox for a particular fintech offering, the SBV may seek input from various regulatory bodies, including the National Assembly Standing Committee, the Ministry of Finance (MOF), the Ministry of Industry and Trade, and the State Securities Commission (SSC). This collaborative approach aims to ensure comprehensive evaluation and regulation of fintech activities in Vietnam.

What activities in your jurisdiction necessitate obtaining a license?

The following activities in our jurisdiction are subject to regulation and require a license:

+ Securities brokerage

+ Securities investment consultancy

+ Financial advising related to securities trading or investment

Payment services

a. Non-cash payment

b. Intermediary payment service (IPS)

Conclusion

In conclusion, the fintech industry in Vietnam is subject to regulatory oversight by the State Bank of Vietnam (SBV), which plays a crucial role in setting and enforcing regulations to ensure the stability and integrity of the financial system. Fintech companies operating in Vietnam need to comply with licensing requirements and adhere to specific technical, legal, and personnel standards. The SBV has been actively updating and amending regulations to keep pace with the evolving fintech landscape, including the ongoing amendments to non-cash payment regulations, which impact intermediary payment service providers (IPS). As Vietnam embraces digital innovation, the regulatory framework must strike a balance. This balance fosters fintech growth while safeguarding consumer protection and financial stability. By navigating the intricacies of fintech regulations, Vietnam aims to create an enabling environment. This environment promotes innovation and propels the country towards a more inclusive and advanced digital economy.

For the full detail of this post, please reference on this link:  http://hmlf.vn/fintech-regulations-in-vietnam-authority-regulated-and-forms-of-payment/

Harley Miller Law Firm “HMLF”
Head office: 14th floor, HM Town building, 412 Nguyen Thi Minh Khai, Ward 05, District 3, Ho Chi Minh City.
Phone number: +84 937215585
Website: hmlf.vn Email: miller@hmlf.vn

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