In the past few years, Vietnam has witnessed a major increase in the number of fintech companies. According to the State Bank of Vietnam (SBV), there are more than 150 fintech start-ups currently active; of them, 34 operate in payment, 40 in P2P lending while others provide banking support services without directly collecting fees on end-users. However, most of the fintech services are not governed by any current legal framework, leading to the authority’s concern over the market abuse, financial exclusion, security and data breach, money laundering, terrorism financing, and rights of end-users.
In order to promote the development of fintech in Vietnam while eliminating the threats to financial and banking stability, the Prime Minister issued Decision No. 999/QD-TTg dated 12 August 2019 approving the development scheme for sharing economy, in which assigns the SBV prepare a scheme to govern matters in relation to the fintech and financial-related services.
Finally, on 01 June 2020, the SBV released the first draft decree on regulatory sandbox for fintech (Draft Decree) for public’s comments. The first version of the Draft Decree consists of 21 articles divided into 05 chapters.
In this legal update, we will highlight some major points under the Draft Decree that, from our point of view, fintech service providers should stay alert on.
Hoang Le Hang
Business Development Manager
Tel: +84 24 3971 0888