Vietnam to Leverage AI for Crypto Asset Risk Management Amidst New Regulations

Vietnam is currently deliberating amendments to laws concerning the management of virtual asset risks. Nguyen Thanh Tung, Chairman of Vietcombank, highlighted that traditional methods are insufficient for managing virtual asset risks and that investment in advanced technologies like AI is essential. Mr. Tung emphasized the importance of including virtual asset services under anti-money laundering (AML) regulations, especially given Vietnam's current position on the Financial Action Task Force's (FATF) "grey list." However, he noted that the cross-border nature and rapid transaction speeds of virtual assets make them difficult to manage with existing bank cash flow control tools. "We cannot use traditional methods to manage them," he stated, revealing that Vietcombank is already enhancing its technological investments, including the use of AI. While complying with the AML law amendments will incur costs, he considers it a necessary undertaking. Mr. Tung expressed his hope that effective risk management for virtual assets, through collaboration and information sharing with relevant ministries and international organizations, could lead to Vietnam's removal from the grey list, as well as an improvement in market ratings and an attraction of investment capital. Do Duc Hong Ha, Vice Chairman of the National Assembly's Committee on Law, also pointed out significant legal gaps in Vietnam's regulatory framework for virtual assets. He stated that due to the high anonymity of virtual assets and the difficulty in controlling them with traditional monetary authorities, criminals are exploiting them for money laundering, tax evasion, and terrorist financing. Therefore, he believes that including virtual asset services in AML reporting and establishing a list of specific suspicious transaction indicators are crucial steps to close these loopholes. The draft law not only adds virtual asset services to the scope of AML but also outlines 15 suspicious transaction indicators to monitor, aiming to meet international AML requirements. These indicators are categorized into four groups: transaction anomalies, concealment of source and technology, unclear customer identities, and high-risk partners or regions in the virtual asset sector. Nguyen Van Quang, Chief Justice of the Supreme People's Court, expressed concern that the current draft might be too detailed, potentially hindering timely responses to practical issues. He suggested that the law should adopt a more flexible framework, delegating detailed regulations to the government, which would allow for more agile identification of suspicious indicators in line with evolving realities in both Vietnam and globally. Source: VnExpress